Answer Happy

Brown & Co. Ltd. Began to trade on January 1, 1998. During 1998 the Company was engaged on only one contract, the contract price of which was fixed at $. 1,50,000. Of the plant and materials charged to the contract, portions of the plant which cost $. 1,500 and materials which cost $. 1,200 were lost. On December 31, 1998, portions of the plant which cost $. 1,500 was returned to the stores, the cost of work done but uncertified was $. 600 and materials costing $. 1,200 were in hand on site. Charge 10% depreciation on plant, reserve 1/3 of profit received and prepare the Contract Account and the Balance Sheet from the following Trial Balance: