At 31 October 20X0, Lytax Ltd was engaged in various contracts including five long-term contracts, details of which are given below:

1 2 3 4 5

£000 £000 £000 £000 £000 Contract price 1,100 950 1,400 1,300 1,200 At 31 October Cumulative costs incurred 664 535 810 640 1,070 Estimated fur ther costs to completion 106 75 680 800 165 Estimated cost of post-completion guarantee rectification work 30 10 45 20 5 Cumulative costs incurred transferred to cost of sales 580 470 646 525 900 Progress billings:

Cumulative receipts 615 680 615 385 722 Invoiced

– awaiting receipt 60 40 25 200 34

– retained by customer 75 80 60 65 84 It is not expected that any customers will default on their payments.

Up to 31 October 20X9, the following amounts have been included in the tur nover and cost of sales figures:

1 2 3 4 5

£000 £000 £000 £000 £000 Cumulative revenue 560 340 517 400 610 Cumulative costs incurred transferred to cost of sales 460 245 517 400 610 Foreseeable loss transferred to cost of sales — — — 70 —

It is the accounting policy of Lytax Ltd to arrive at contract revenue by adjusting contract cost of sales

(including foreseeable losses) by the amount of contract profit or loss to be regarded as recognised, separately for each contract.

Required:
Show how these items will appear in the balance sheet of Lytax Ltd with all appropriate notes.
Show all workings in tabular form.