A firm of building contractors began to trade on 1st April 1997. The following was the expenditure on the contract for Rs 3,00,000: Materials issued to contract Rs 51,000; Plant used for contract Rs 15,000;

Wages incurred Rs 81,000; Other expenses incurred Rs 5,000.

Cash received on account to 31st March 1998, amounted to Rs 1,28,000 being 80% of the work certified.

Of the plant and materials charged to the contract, plant which cost Rs 3,000 and materials which cost Rs 2,500 were lost. On 31st March 1998, plant which cost Rs 2,000 was returned to store, the cost of work done but uncertified was Rs 1,000 and materials costing Rs 2,300 were in hand on site.

Charge 15% depreciation on plant, and take to the profit and loss account 2/3rd of the profit received.

Prepare the contract account, contractee’s account and balance sheet from the above particulars.