Joseph & Co. accepted to construct a big building. Its contract price is $. 40,00,000, The estimated cost of the contract is $. 36,80,000. By the year end the company collected $. 14,40,000 cash. It is equivalent to 90% of the work certified. The expenses on contract are as follows: $ Materials 4,00,000 Labour 1,00,00,000 Machinery 80,000 $. 20,000 worth of materials are damaged. Depreciation on machinery 25%. Prepare contract account and ascertain the reasonable profit to be transferred to profit and loss account