Future Construction Ltd. was awarded with a contract worth ₹10,00,000. Following expenses were incurred by the company for the year ended 31 st March, 2012: ₹ Plant issued to contract 1,00,000 Material 2,00,000 Wages 2,5

Future Construction Ltd. was awarded with a contract worth ₹10,00,000. Following expenses were incurred by the company for the year ended 31 st March, 2012: ₹ Plant issued to contract 1,00,000 Material 2,00,000 Wages 2,50,000 Hire charges 50,000 Electricity 1,00,000 Administration overheads 60,000 Of the plant issued to the contract, a part with the original cost of ₹40,000 was sold for ₹50,000 on 1 st April, 2011. Plant is subject to depreciation @10% per annum. Material worth ₹20,000 were in stock as on 31 st March, 2012. As on 31 st March, 2012, the company received ₹7,20,000 by way of cash being 80% of the work certified. Cost of uncertified work as on 31 st March, 2012 was ₹30,000. The company is expecting to complete the contract by 30 th June, 2012, for which the following additional expenditure are expected to be incurred: ₹ Material (in addition to material in hand) 40,000 Wages 30,000 Administration overheads 5,000 Contingency : 5% of total cost excluding contingency. You are required to prepare contract account for the year ended 31 st March, 2012.