stock of materials at site on 31 december 2009 was of the value of rs 25 000 wages o 619654

AONE Construction Co. Ltd which commenced its business of construction on 1 January 2009 showed the following balances:

	Dr Rs.	Cr Rs.
Paid-up share capital	–	5,00,000
Cash received on account of	–	6,00,000
contract (80%of work certified)
Land and Buildings	1,50,000	–
Machinery at cost (75%at site)	2,00,000	–
Bank	20,000	–
Materials at site	2,00,000	–
Direct labour	2,75,000	–
Expenses at site	10,000	–
Lorries and Vehicles	1,50,000	–
Furniture	5,000	–
Office equipment	50,000	–
Postage and Telegrams	2,500	–
Office expenses	10,000	–
Rates and Taxes	15,000	–
Fuel and Power	12,500	–
	11,00,000	11,00,000

The contract price is Rs. 15,00,000 and the work certified is Rs. 7,50,000. The work completed since certification is estimated at Rs. 5,000 (at cost). Machinery costing Rs. 10,000 was returned to stores at the end of the year. Stock of materials at site on 31 December 2009 was of the value of Rs. 25,000. Wages outstanding were Rs. 1,000. Depreciation on machinery is 10%. You are required to calculate the profit from the contract and prepare the Balance Sheet as on 31 December 2009.