The following was the expenditure on a contract for Rs 6,00,000 commenced in January, 1997:

Material Rs 1,20,000; Wages Rs 1,64,400; Plant Rs 20,000; Business Charges Rs 8,600.

Cash received on account to 31st December, 1997 amounted to Rs 2,40,000 being 80% of work certified; the value of materials in hand on 31-12-1997 was Rs 10,000. Prepare the contract account for 1997 showing the profit to be credited to the year’s profit and loss account. Plant is to be depreciated at 10%.