At the end of the year, the company had received `₹ 14,40,000 being 90% of the work certified; work done but not certified was ₹ 40,000. Following expenditure were incurred. ₹ Materials 4,00,000 Labor ₹ 10,00,000 Plant 80,000Materials costing ₹ 20,000 were damaged. Plant is considered as having depreciated at 25%. What is amount to be transferred to WIP Reserve Account?
a) 12000
b ) 8000
c) 10000
d) 7200
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OPTION A
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