The contract ledger of a company showed the following expenditure on account of contract number 12345 on 31st March 1998.
|
Rs |
|
|
Materials |
1,88,000 |
|
Plant |
24,000 |
|
Wages |
2,06,000 |
|
Establishment charges |
13,400 |
The contract commenced on 1st April 1997 and the contract price is Rs 8,00,000. The value of work certified by the architect is Rs 4,30,000 of which 80% has been received in cash to date. The value of material on hand is Rs 9,000 and the work certified is Rs 8,000.
Assuming depreciation on plant at 10% p.a., prepare the contract account showing the profit the firm would be justified in taking to the credit of profit and loss account of the year.