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please help me with this Wajenzi Limited commenced its operations on 1 January 2003. The company was engaged in one contract only, the price of
please help me with this
Wajenzi Limited commenced its operations on 1 January 2003. The company was engaged in one contract only, the price of which was Sh. 100 million. The trial balance of the company as at 31 December 2003 was as follows:,,,,,,,,,,,,,,,,,,
Wajenzi Limited commenced its operations on 1 January 2003. The company was engaged in one contract only, the price of which was Sh. 100 million. The trial balance of the company as at 31 December 2003 was as follows: Sh. '000' Share capital Creditors Cash received on contract (80% of work certified) Land and buildings Bank balance Materials charged on contract Plant (original cost 1 January 2003) Wages Expenses Sh. '000' 20,000 2,000 40,000 8,000 4,800 18,000 5,000 25,000 1,200 62,000 _____ 62,000 Additional information: 1. Wages outstanding amounted to Sh. 3 million 2. Expenses outstanding amounted to Sh. 200,000 3. Depreciation on plant was at a rate of 10% per annum on time basis 4. Materials on hand at site as on 31 December 2003 were valued at Sh. 800,000. 5. A part of plant (original cost Sh. 1,000,000) was destroyed by fire on 30 September 2003. This was subsequently sold as scrap for Sh. 200,000 on 31 December 2003. 6. Plant (original cost Sh. 1,000,000) was transferred to another contract on 31 December 2003. 7. Work uncertified as on 31 December 2003 was Sh. 400,000. 8. Materials costing Sh. 800,000 was destroyed by fire on 31 December 2003. Required: (a) Contract account for the period ended 31 December 2003 (6 marks) (b) Abnormal loss account (4 marks) (c) Profit and loss account for the year ended 31 December 2003 (4 marks) (d) Balance sheet as at 31 December 2003 (6 marks)Step by Step Solution
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