QUESTION 1 HR Construction makes its accounts to 31 March each year. Following is for the year ended 31 March 2009 Contract A Contract B Date contract commenced 1 April 2008 1 December 2008 Target completion date 31 May 2009 30 June 2009 Retention 4% 3% 000's 000's Contract Price 2000 550 Materials 31/03/2009 75 15 150 30 150 40 30 270 Materials sent to site Materials returned to stores Plant sent to site Materials transferred Plant hire charges Labour cost Central Overhead cost Direct expenses Value Certified Cost of work not certified Cash received from client Estimated cost of completion 700 80 1 000 (40) 200 300 75 25 1500 160 1440 135 18 4 500 20 460 110 Depreciation is at 12% per annum straight line. Required: a) Prepare contract accounts and show the cost of work certified (.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. (10%) d) Show the amounts in regard to the above question that would appear in the Balance Sheet. (20%)