Mjengo limited was awarded to a contract a  building building for ksh 10,000,000. The work began at the start of the year 2019.  The following information relates to the year ended 31 December 2020.

plant on site (1n January )                               2,500,000

plant purchased                                               1,300,000

inspection fee                                                    40,000

materials purchased                                        1,800,000

salaries and wages                                            480,000

values of work not certified                             1,550,000

value of work certified                                       6,935,000

consultancy fees                                                 30,000

sub-contraction fees                                           145,000

Balance as at 31 December 2020

materials                                                                480,000

plant                                                                        1,900,000

accrued wages                                                      70,000

Additional information;

Is the policy of the firm transfer 20% of the national profit to the income statement .

The firm sold of the materials costing ksh 100,000 at the site.

Prepare a contract account for the year ended 31 December 2020

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