Costing

Hello, 

Think of Contract Account as a personal account.

As a contractor, when you are giving the material to the contract: 

Contract account: Personal: Debit the receiver.
Material account: Asset: Credit what goes out.

• Contract Account Dr.
  To, Material issued Cr.

Similarly, As a contractor, when you are getting back the material from the contract:

Material: Asset: Debit what comes in.
Contract: Personal: Credit the giver.

• Material/Plant returned to site Dr
  To, Contract A/c Cr

Therefore in Contract A/c,

By, Plant returned to site. 

Regards,
Subhash.