At 31 October 20X0, Lytax Ltd was engaged in various contracts including five long-term contracts, details of which are given below:

It is not expected that any customers will default on their payments.

Up to 31 October 20X9, the following amounts have been included in the revenue and cost of sales figures:

It is the accounting policy of Lytax Ltd to arrive at contract revenue by adjusting contract cost of sales (including foreseeable losses) by the amount of contract profit or loss to be regarded as recognised, separately for each contract.

Required:

Show how these items will appear in the statement of financial position of Lytax Ltd with all appropriate notes. Show all workings in tabularform.

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4 5 £000 £000 £000 £000 £000 Contract price 1,400 1,300 1,100 950 1,200 At 31 October 1,070 Cumulative costs incurred 664 535 810 640 Estimated further costs to 800 completion Estimated cost of post-completion guarantee rectification work 106 75 680 165 10 30 45 20 Cumulative costs incurred transferred to cost of sales 580 470 646 525 900 Progress billings: Cumulative receipts 615 722 615 680 385 Invoiced - awaiting receipt - retained by customer 60 40 25 200 34 75 80 60 65 84 2.