QUESTION 2 [20 MARKS] Mrs. Smitha started work on a contract for P500,000 on 1.1. 2015. The following information relating to the contract is available. Materials issued 160,000 Wages paid 101,200 Wages outstanding on 31.03.2015 37,520 Page 4 of 5 New machines purchased and sent to site 148,000 Direct charges paid 7,500 Direct charges outstanding on 31.03.2015 600 Establishment charges apportioned to contract 6,400 On 31.03.2015 materials lying unused at site were valued at * 21620. Machines are to be depreciated at 20% p.a. Value of work certified by 31.3.2015 was P350,000 while the cost of work done but not yet certified as on that date was P18,000. Mrs. Smitha had received a total sum of P280,000 from the contractor till 31.3.2015. REQUIRED Prepare contract account in Mrs. Smitha ledger. [TOTAL: 40 MARKS] *END OF ASSIGNMENT 2**#