M/s Anand Associates commenced the work on a particular contract on 1st April 1994. They close their books of accounts for the year on 31st December each year. The following information is available from their costing records on 31st December 1994.

Rs Materials sent to site 43,000 Foreman’s salary 12,620 Wages paid 1,00,220 A machine costing Rs 30,000 remained in use on site for 1/5th of the year. Its working life was estimated at 5 years and scrap value at Rs 2,000. A supervisor is paid Rs 2,000 per month and he had devoted one-half of his time on the contract.

All other expenses were Rs 14,000. The materials on site were Rs 2,500. The contract price was Rs 4,00,000. On 31st December 1994, 2/3rd of the contract was completed; however, the architect gave a certificate only for Rs 2,00,000 on which 80% was paid. Prepare the contract account.