The following was the expenditure on a contract for Rs 6,00,000 commenced in January, 1997:
|
Rs |
|
|
Material |
1,20,000 |
|
Wages |
1,64,400 |
|
Plant |
20,000 |
|
Business charges |
9,000 |
Cash received on account to 31st December 1997 amounted to Rs 2,60,000 being 80% of work certified; the value of materials in hand on 31 12 1997 was Rs 25,000. Prepare the contract account for 1997 showing the profit to be credited to the year’s profit and loss account. Plant is to be depreciated at 10%.