A contractor undertook a contract for Rs. 50,000 on 1 January 2009 to be completed over a period of two years. His accounting year ends on 31 December 2009. State with reasons at what value the WIP on 1 January 2010 will appear in the contract account in each of the following cases:
- WIP on 1 January 2010 is Rs. 14,000 (including Rs. 800 estimated profit which was taken to P&L A/c in 2009)
- WIP on 1 January 2010 is Rs. 14,000 (including Rs. 800 which was not taken to P&L A/c in 2009)
- WIP on 1 January 2010 is Rs. 14,000 (excluding Rs. 800 estimated profit which was not taken to P&L A/c in 2009)
- WIP on 1 January 2010 is Rs. 14,000 (excluding Rs. 800 estimated profit which was taken to P&L A/c in 2009)