General information on the Lytax group of companies:
Lytax Ltd is a company in the building construction industry.
It has three regional offices, North Borders, Midlands and South Downs, which are constituted as separate units for accounting purposes.
On 25 May 2010 Lytax Ltd acquired 90 per cent of the ordinary share capital of Ceprem Ltd, a company which manufactures building materials.
Lytax Ltd has for 3 years held 15 per cent of the ordinary share capital of Bleco plc. This company carries out specialist research and development activities into building and construction materials, technology and techniques. It then sells the results of these activities to other companies.
Details of long-term contract work undertaken by Lytax Ltd:
At 31 October 2010, Lytax Ltd was engaged in various contracts including five long-term contracts, details of which are given below:

It is not expected that any contractees will default on their payments, Up to 31 October 2009, the following amounts had been included in the turnover and cost of sales figures.

It is the accounting policy of Lytax Ltd to arrive at contract turnover 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: 

(a) Calculate the amounts to be included within the turnover and cost of sales figures of the profit and loss account of Lytax Ltd for the year ending 31 October 2010, in respect of the long-term contracts.

(b) Prepare extracts from the balance sheet of Lytax Ltd at 31 October 2010 incorporating the financial effects of the long-term contracts.

Your answer should comply with the requirements of SSAP 9 (Stocks and Long-Term Contracts) and should include any supporting notes required by that standard.

Workings for individual contracts which build up to the total for each item must be shown.

All calculations should be made to the nearest 1,000.

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1 2 3 4 5 000 000 000 000 000 Contract price 1,100 950 1,400 1,300 1,200 At 31 October 2010: Cumulative costs incurred 664 535 810 640 1,070 Estimated further 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 payments Cumulative receipts 615 680 615 385 722 Invoiced: Awaiting receipt 60 40 25 200 34 Retained by contractee 75 80 60 65 84