Jenga Ltd. is a construction company whose financial year ends on 31 March. The information provided below was extracted from the books of the company in connection with the three construction contracts undertaken by the company during the financial year ended 31 Mach 2005.

Contract No.468

Contract No.469

Contract No.470 Sh 000 Sh. 000 Sh. 000

Contract price 3600 4800 2500

Cost incurred up to 31 March 2004 1800 3000 1500

Cost incurred during the year600 1000 500

Estimated total cost of the contract 3000 5200 2300

Total billings to date 2800 4500 1800

Total cash received to date2600 4200 1700

Total profit/(loss) reported on the contract to date360 30 (20)

General administration expenses6012030

 

Required:

Using the percentage of completion method of accounting for long-term construction contracts:

Calculate the profit or loss realised on each contract for the year ended 31 Marcy 2005.(6 marks)

Prepare profit and loss account extracts for each contract for the year ended 31 March 2005.(3 marks)

Prepare balance sheet extracts as at 31 March 2005.