Deluxe Limited undertook a contract for Rs 5,00,000 on 1st July 1997. On 30th June 1998 when the accounts were closed, the following details about the contract were gathered:

	Rs		Rs
Materials purchased	1,00,000	Wages accrued 30-06-1998	5,000
Wages paid	45,000	Work certified	2,00,000
General expenses	10,000	Cash received	1,50,000
Plant purchased	50,000	Work uncertified	15,000
Materials on hand 30-06-1998	25,000	Depreciation of plant	5,000

The above contract contained an escalation clause, which read as follows:

"In the event of prices of materials and rates of wages increase by more than 5% the contract price would be increased accordingly by 25% of the raise in the cost of materials and wages beyond 5% in each case.

It was found that since the date of signing the agreement the prices of materials and wages rates increased by 25%. The value of the work does not take into account the effect of the above clause.

Prepare the contract account working should form part of the answer.