A undertook several large contracts, and his ledger, therefore, contained a separate account for each contract on 30th June. The account of contract number 51 showed the following as expended thereon.

Rs Materials directly purchased 90,000 Materials issued from stores 25,000 Plant purchased 80,000 Wages 1,22,000 Direct expenses 12,000 Portion of establishment charges 27,000 3,56,000 The contract was for Rs 7,50,000; and up to 30th June Rs 2,90,000 had been received in cash which represented the full amount certified less 20% retention money. The materials on site unconsumed were valued at Rs 7,500. The contracting plant was to be depreciated by Rs 8,000.

Prepare the contract account showing the profit that had been earned to date. Also state what amount should, in your opinion, be taken to the profit and loss account of the period.