2018

2019

2020

Cost during the year

3500000

4000000

2500000

Estimated Future cost

6500000

2500000

0

Billings during the year

5,000,000

4,000,000

3,000,000

Cash collected during the year

4,000,000

3,500,000

4,500,000

Company began work on a contract in 2016 that generates revenue AED 12,000,000 & cost AED 10,000,000 and which is due to be completed in 2020.

1) Calculate the percentage of completion for 2018, 2019 and 2020 (9 marks)

2) Record all necessary entries for 2018 (18 marks)

3) What amount of total gross profit for the whole contract. (5 marks)

4) What amount of gross profit recognized in 2019. (6 marks)

5) Record the transaction to close the accounts when the project is delivered to the customer in 2018. (2 marks