Stannard and Sykes Ltd are contractors for the construction of a pier for the Seafront Development Corporation.

Question:

Stannard and Sykes Ltd are contractors for the construction of a pier for the Seafront Development Corporation. The value of the contract is £300,000, and payment is by engineer’s certificate subject to a retention of 10% of the amount certified; this is to be held by the Seafront Development Corporation for six months after the completion of the contract.
The following information is extracted from the records of Stannard and Sykes Ltd.


Required:
Prepare the Pier Contract Account to 30 November 2018, and suggest a method by which profit could be prudently estimated.

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