The loss on incomplete contract should be fully transferred to profit and loss account the following was the expenditure on a contract for Rs. 6,00,000 Material 1,20,000 Wages 1.64,000 Plant 20.000 Overheads 8,600 Cash received on account of the contract was Rs. 240.000 being 80% of the work certified. The Value of material in hand was Rs. 10,000. The plant has undergone 20% depreciation. CONTRACT ACCOUNT Rs. Rs. To materials 1.20,000 By material in hand 10,000 To Wages 1.64,000 By plant on hand 16,000 To Plant 20,000 By work certified To overheads 8,600 (2,40,000x10080) 3,00,000 To Notional protit 13,400 3,26,000 3.26,000 S51 13.400 To PL account To Balance cd 7,147 By notional profit bid 6,253 13.400 13.400 XY Ltd undertook a contract the following was the expenditure on a contract for Rs 6,00.000 Material issued to contract Rs. 1,02,000 Plant issued for contract Rs. 30000 Wages Rs. 1,62,000 Other expenses Rs 10.000 Cash received on account of contract up to 31" march 2011 amounted to Rs. 2.56.000 being 80% of work certified. Of the plant and material charged to the contract plant costing Rs. 3000 and material costing Rs. 4000 were lost. On Ist March 2011, Plant which cost Rs. 2,000 was retumed to the store, the cost of work done but not certified was Rs. 3000 and material costing Rs. 2,500 were in hand on site. Provide 10% depreciation on plant, reserve 1/3 of profit received and prepare contract account from the above particulars