M/s Anil & Company, a firm of building contractors undertook a contract for construction of a commercial complex on 1st January 1997. The following was the expenditure on the contract for Rs 9,00,000.

	Rs
Materials issued to contract	76,500
The plant issued for contract	22,500
Wages	1,21,500
Other expenses	7,500

Cash received on contract to 31st December 1997 amounted to Rs 3,84,000 being 80% of work certified.

Of the plant and materials charged to the contract, the plant which cost Rs 9,000, and materials costing Rs 7,500 were lost.

On 31st December 1997, plant costing Rs 6,000 was returned to stores. The cost of work done but uncertified was Rs 3,000 and materials costing Rs 6,900 were in hand. Charge 15% depreciation on plant. Reserve 1/3rd profits earned and prepare contract account from the above particulars.

Answer rating: 100% (QA)

The total cost of the contract was Rs 10 92 000 Rs 7... View the full answer