Contract Accounting Question One Alloy Constructions Plc have just seda five your commct to construct a 10,000 kilometers road for the federal government of Nigeria. The CBO is decided on the method to me to recognise profit and has solicited your advice as aficial coltant. Prepare a meme so him in line with the following outline Identify the methods that can be used to recognise poolt on a contract, mentioning their features ii. Explain the effect that the use of completed contract meted on a long term project would hase on the performance of a company . Discuss the comiderations that underlay the decis caption of profit in a long term contract Question The In accounting for long term contract, the rest of profit or low on the contract is very important Required: Discuss the principles underlying the two options available for treatment of profit on a ii. Clearly explain the principle underlying the treatment of foreseeable lines on a contract contract Question Three Lamhe CONSTRUCTION Coy LTD. undertaken the construction of multi-storey building for a contract sum of N25million. The detention money apodis 20% and the contractoe is to make payment for ou of the work certified by the Architect. The following are the details as shown in the books on 31 March 2014 Materials sont directly to it 3.400.000 Materials from stores 2,124.000 Labour on site X.100.000 Hire and use of plant 342.000 Materials destroyed at site (cost) 100.000 Direct expenses 0.000 General expenses allocated to contract 742,000 Materials soldatsite at a profit of 20. selling price 100.000 Materials at hand en 31 March 2019 126.000 Wapes accrued on 31 March 2019 Direct expenses accrued on 31 March 2019 Work not yet certificat cost Work certified by the Architect Cash received from contracte You are required to preparet Contract Account . Contractes Accom 156.000 12.000 350.000 22.000.000 17.000.000 ** Always show your working