Bella has a three-year contract which commenced on 1 January 2020. As at 31 December 2020 Bella
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Question:
Bella has a three-year contract which commenced on 1 January 2020. As at 31 December 2020 Bella extracted the following balances from its ledger relating to the contract:
RM’000 | RM’000 | |
Total contract value | 140,000 | |
Cost incurred up to 31 December 2019: | ||
Attributable to work completed | 52,000 | |
Inventory purchased for use in future years | 8,000 | 60,000 |
Progress billing to date | 45,000 | |
Cash received | 26,500 | |
Other information: | ||
Expected further costs to completion | 48,000 |
As at 31 December 2020, the contract was certified as 40% complete.
Required:
- Prepare extracts from the statement of profit or loss and statement of financial position for the year- ended 31 December 2020.
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