5. ABC Ltd. took up a construction work of a building at a contract price of 30,00,000. During the first year, the following amounts were spent as against a sum of R11,25,000 which represented 80% of the work certified and received by the contractor. Material Wages paid to workers Overhead expenses 5,25,000 3,00,000 75,000 During the second year, the firm spent the following amounts: Material 7,50,000 Wages paid to workers 6,00,000 Overhead expenses 1,50,000 In the second year, the contract was completed and a sum of 17,50,000 was received by the contractor. Prepare the contractor and contractee's accounts for both years and calculate profit. Consider only 2/5 of the notional profit that is to be taken to the credit of the profit and loss account in the first year as the work done is less than 50%. [20]