9. Contractors Nigeria Ltd. undertook to build a cooling tower at a contract price of N675,000. It is estimated that it will take two years to complete. Work commenced on 1st May 1985. The company's year ended on 30th September 1986, on which date the position of the contract was as follows: Certificates to 15th September 1986 less 10% retention Add, extra works over contract as agreed: Last time This time 3,100 230 Less: cash paid on account Amount now due (and paid 24.10.86) Expenditure on the contract was as follows: Materials sent by suppliers to site Materials sent from plant and stores yard Wages Haulage of plant Expenses incurred on contract Plant sent to contract Establishment charges apportioned to contract N 475,000 47,500 427,500 3,330 430,830 408,330 22,500 N 212,000 1,500 105,000 2,400 3,800 89,000 30,300 On 30th September 1986, it was estimated that materials on site amounted to N3,050. During execution of the contract, plant to the value of N 35,000 was transferred from the site. The plant remaining on site at 30th September, 1986 was valued at N 32,000. The amount of work done (at cost) between the date of the last certificate and the end of the financial year was estimated at N10,250. The company, being careful as to the amount of profit to be taken on uncomplete contracts and considering that only a few months' work had been done at 30th September 1986 did not take any profit then. You are required: (a) If the company were to take credit for profit on the contract: (i) (ii) to calculate the amount which you consider may be fairly taken into the firm's accounts at 30the September 1986. to calculate the work-in-progress figure. How would this new figure be shown in the balance sheet of the company? To show the contract account in the company's costing ledger to record the above transactions. (15 marks)