debit balances of the trial balance of a contractor for a particular contarct at the year end shows:
wages 180000
expenses 47000
and expenses are charged @ 25% of wages.
now what figures of wages and expenses will be debited in the contract account, whether-
1) wages for the year 47000/25% = 188000
expenses for the year = 47000
OR
2) wages for the year = 180000
expenses for the year 180000*25% = 45000