For the year ended 31 December 2010, ExcelBina Bhd has two outstanding contracts. Details of the contract are as follows:

Required:

1. Calculate the amount of construction revenue, construction costs, and profit or loss that should be recognized by ExcelBina for the financial year 2010.

2. Prepare the extract of the Statement of Profit or Loss for the financial year 2010.

3. Show the disclosure of the amount due from/ (to) the customer for the financial year 2010 for each of the contracts.

Transcribed Image Text:

Contract revenue: Original price Variation to the contract price Costs incurred to date Estimated costs yet to be incurred Revenue, costs and profit recognized in income as at 31 December 2009 Revenue Constructions costs Profit/loss Progress billings as at 31 December 2010 Contract A RM'000 65,000 3,000 28,000 42,000 13,000 (10,000) 3,000 3,240 Contract B RM'000 35,000 6,800 24,440 4,000 12,500 (17,300) (4,800) 4,560 Contract revenue: Original price Variation to the contract price Costs incurred to date Estimated costs yet to be incurred Revenue, costs and profit recognized in income as at 31 December 2009 Revenue Constructions costs Profit/loss Progress billings as at 31 December 2010 Contract A RM'000 65,000 3,000 28,000 42,000 13,000 (10,000) 3,000 3,240 Contract B RM'000 35,000 6,800 24,440 4,000 12,500 (17,300) (4,800) 4,560

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Part 1 contract A contr... View the full answer