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
|
3,600
|
4,800
|
2,500
|
|
Cost incurred up to 31 March 2004
|
1,800
|
3,000
|
1,500
|
|
Cost incurred during the year
|
600
|
1,000
|
500
|
|
Estimated total cost of the contract
|
3,000
|
5,200
|
2,300
|
|
Total billings to date
|
2,800
|
4,500
|
1,800
|
|
Total cash received to date
|
2,600
|
4,200
|
1,700
|
|
Total profit/(loss) reported on the contract to date
|
360
|
30
|
(20)
|
|
General administration expenses
|
60
|
120
|
30
|
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.
Prepare profit and loss account extracts for each contract for the year ended 31 March 2005.
Prepare balance sheet extracts as at 31 March 2005.