The following information relates to contract no.123. You are required to prepare the contract account and contractee’s account assuming that the amount due from the contract was fully received.

Rs Direct material 20,250 Direct wages 15,500 Stores issued 10,500 Loose tools 2,400 Tractor expenses:

Running material 2,300 Wages of drivers 3,000 5,300 Other direct charges 2,650 The contract price was Rs 90,000 and the contract took 13 weeks in its completion. The value of loose tools and stores returned at the end of the period were Rs 200 and Rs 3,000, respectively. A plant was also used and returned at a value of Rs 16,000 after charging depreciation at 20%. The value of tractor was Rs 20,000 and depreciation was to be charged to the contract at 15% p.a. The administration and office expenses are to be provided at 10% on works cost.