The following information relates to a building contract for Rs 10,00,000.

1986 Rs 1987 Rs Materials issued 3,00,000 84,000 Direct wages 2,30,000 1,05,000 Direct expenses 22,000 10,000 Indirect expenses 6,000 1,400 Work certified 7,50,000 10,00,000 Work uncertified 8,000 –

Materials at site 5,000 7,000 Plant issued 14,000 2,000 Cash received from contractee 6,00,000 10,00,000 The value of the plant at the end of 1986 and 1987 was Rs 7,000 and Rs 5,000, respectively.

Prepare (i) contract account and (ii) contractee’s account for the two years 1986 and 1987 taking into consideration such profit for transfer to profit and loss account as you think proper.