A and B, contractors, obtained a contract to build houses, the contract price being $. 4,00,000. Work commenced on January 1, 1997, and the following expenditure was incurred during the year : plant and tools $. 20,000; stores and materials $. 72,000; wages $. 65,000; sundry expenses $. 5.300; and establishment charges $. 11,700. Certain materials costing $. 12,000 were unsuited to the contract and were sold for $. 14,500. A portion of the plant was scrapped and sold for $. 2,300. The value of the plant and tools on site on December 31, 1997, was $. 6,200 and the value of the stores and materials on hand, $. 3,400. Cash received on account was $. 1.40,000 representing 80% of the work certified. The cost of the work done but not yet certified was $. 21.900; this was certified later for $. 25,000. A and B decided to estimate what further expenditure would be incurred in completing the contract and to compute from this estimate and the expenditure already incurred, the total profit that would be made on the contract, and to take into credit of Profit and Loss Account for the year 1997 that portion of the total which corresponded to the work certified by December 31. The estimate was a follows: (1) That the contract would be completed by September 30, 1998. (2) That the wages on the contract in 1998 would amount to $. 71,500. (3) That the cost of stores and materials required in addition to those in stock on December 31, 1997, would be $. 68,600 and that the further contract expenses would amount to $. 6,000. The plant (3) That a further $. 25.000 would have to be laid out on plant and tools and that the residual value of and tools on September 30, 1998, would be $. 3,000. (4) That the establishment charges would cost the same per month as in 1997. (5) That 22% of the total cost of the contract would be due to defects, temporary maintenance and contingencies. Prepared the Contract Account, Stores and Materials Account and Plant Account for the year ended December 31. 1997, and show your calculation on the amount credited to the Profit and Loss Account, for the year 1997.