The following information relates to a contract for Rs 7,50,000 (the contractee paying 90% of the value of work done and certified by the Architect and rest on completion of the contract) of Murugan Construction Company.

	1996 Rs	1997 Rs	1998 Rs
Materials	90000	1,10,000	63,000
Wages	85,000	1,15,000	85,000
Direct expenses	3,500	12,500	4,500
Indirect expenses	1,500	2,000	-
Work certified	1,75,000	5,65,000	7,50000
Work uncertified	-	10,000	-
Plant	10000	-	-

The value of plant at the end of 1996, 1997 and 1998 was Rs 8,000, Rs 5,000 and Rs 2,000 respectively.

Prepare contract account for the three years in the books of Murugan Construction Company.

Answer rating: 100% (QA)

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