Stannard and Sykes Ltd are contractors for the construction of a pier for the Seafront Development Corporation. The value of the contract is $£ 300,000$, and payment is by engineer's certificate subject to a retention of $10 \%$ of the amount certified; this is to be held by the Seafront Development Corporation for six months after the completion of the contract.

The following information is extracted from the records of Stannard and Sykes Ltd.

Wages on site ..... 41,260 Materials delivered to site by supplier ..... 58,966 Materials delivered to site from store ..... 10,180 Hire of plant ..... 21,030 Expenses charged to contract ..... 3,065 Overheads charged to contract ..... 8,330 Materials on site at 30 November 2014 ..... 11,660 Work certified ..... 150,000 Payment received ..... 135,000 Work in progress at cost (not the subject of a certificate to date) ..... 12,613 Wages accrued to 30 November 2014 ..... 2,826

\section*{Required: $\square$}

Prepare the Pier Contract Account to 30 November 2014, and suggest a method by which profit could be prudently estimated.

\section*{(Association of Chartered Certified Accountants)}