Answered step by step
Verified Expert Solution
Question
1 Approved Answer
HR Construction makes its accounts to 31 March each year. Following is for the year ended 31 March 2009 Date contract commenced Contract A
HR Construction makes its accounts to 31 March each year. Following is for the year ended 31 March 2009 Date contract commenced Contract A Contract B 1 December 2008 1 April 2008 Target completion date Retention 31 May 2009 30 June 2009 4% 3% 000's 000's Contract Price 2 000 550 Materials 31/03/2009 75 15 Materials sent to site 700 150 Materials returned to stores 80 30 Plant sent to site 1 000 150 Materials transferred (40) 40 Plant hire charges 200 30 Labour cost 300 270 Central Overhead cost 75 18 Direct expenses 25 4 Value Certified 1500 500 Cost of work not certified 160 20 Cash received from client 1440 460 Estimated cost of completion 135 110 Depreciation is at 12% per annum straight line. Required: a) Prepare contract accounts and show the cost of work certified (i.e. C.O.S.) for each contract for the year. (30%) b) Recommend the amount of profit or loss that should be taken for each contract. (30%) c) Recommend the amount of revenue that should be taken for each contract. d) Show the amounts in regard to the above question that would appear in the Balance Sheet. (10%) (20%)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started