You are required to prepare a contract account for the year ending 31 December 1989 from the following particulars:

Rs Materials 4,00,000 Wages 5,00,000 Expenses 1,00,000 Expenses occurred due 20,000 Plant 2,00,000 Work certified (90% received in cash) 16,00,000 Materials at site (31-12-1989) Rs 40,000.
Depreciate plant by 10%. Ten per cent of the value of materials issued and 5% of the wages may be taken as incurred for the portion of the work completed, but not yet certified. Expenses are to be charged as a percentage to direct wages. Ignore depreciation on the uncertified portion of work. Ascertain the amount to be transferred to the profit and loss account.