The final accounts of Diggers Ltd are made up to 31 December in each year. Work on a certain contract was commenced on 1 April 20X5 and was completed on 31 October 20X6. The total contract price was £174,000, but a penalty of £700 was suffered for failure to complete by 30 September 20X6.

The following is a summary of receipts and payments relating to the contract:

The amount received from the customer in 20X5 represented the contract price of all work certified in that year less 10 per cent retention money.
When the annual accounts for 20X5 were prepared it was estimated that the contract would be completed on 30 September 20X6, and that the market value of the plant would be £4,250 on that date. It was estimated that further expenditure on the contract during 20X6 would be £81,400.
For the purposes of the annual accounts, depreciation of plant is calculated, in the case of uncompleted contracts, by reference to the expected market value of the plant on the date when the contract is expected to be completed, and is allocated between accounting periods by the straight line method.
Credit is taken, in the annual accounts, for such a part of the estimated total profit, on each uncompleted contract, as corresponds to the proportion between the contract price of the work certified and the total contract price.
Required:
Prepare a summary of the account for this contract, showing the amounts transferred to profit and loss account at 31 December 20X5 and 31 December 20X6.

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During 20X5 During 20X6 Payments: Materials 25,490 33,226 Wages 28,384 45,432 Direct expenses 2,126 2,902 Purchases of plant on 1 April 20X5 16,250 Receipts Contract price (less penalty) 52,200 121,100 Sale, on 31 October 20X6, of all plant purchased on 1 April 20X5 4,100