Dell Construction Limited (DCL) took a contract in 2020 for the construction of road. The contract price
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Question:
Dell Construction Limited (DCL) took a contract in 2020 for the construction of road. The contract price was R1000 000, and it is estimated that the cost of completion will be R920 000. The company R360 000 representing 90% of work certified. Work not yet certified was R10 000. Expenditure incurred on the contract during 2020 was as follows: Material R50 000 Material damages R5000 Damaged material sold for R1000 Plant costing R20000 depreciated by 25%
Required: Prepare the contract account for the year ending 2020 in the books of DCL. Also show all possible figures that can reasonably be credited to the profit and loss account in respect of the contract.
Expert Answer:
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