The amount paid to sub-contractor is ________.

The correct answer is: B. debited to contract a/c

A contract account is a type of account used to track the financial information related to a specific contract. When a subcontractor is paid, the amount paid is debited to the contract account. This means that the amount is added to the account, which increases the balance of the account. The balance of the contract account represents the total amount of money that has been spent on the contract.

The other options are incorrect because:

• Option A is incorrect because the amount paid to a subcontractor is not subtracted from the contract price. The contract price is the total amount of money that the contractor is paid for completing the contract. The amount paid to a subcontractor is a cost that the contractor incurs in order to complete the contract.
• Option C is incorrect because the amount paid to a subcontractor is not credited to the contract account. A credit increases the balance of an account, but the amount paid to a subcontractor decreases the balance of the contract account.
• Option D is incorrect because the amount paid to a subcontractor is not added with the contract price. The contract price is the total amount of money that the contractor is paid for completing the contract. The amount paid to a subcontractor is a cost that the contractor incurs in order to complete the contract.