Question: Kazi bora Builders has been engaged to construct a building to serve as the head office of Kengen LTD Kenya. Construction work commenced on 1
Kazi bora Builders has been engaged to construct a building to serve as the head office of Kengen LTD Kenya. Construction work commenced on 1st January 2016 and the following information was extracted from Kazi bora Builders accounting books for the year ended 30 December 2016:
|
| Shs. |
| Contract price | 1,500,000 |
| Payment for direct wages | 240,000 |
| Materials issued | 275,000 |
| Materials returned to store | 2,500 |
| Plant and equipment on site 1st Jan 2016 | 150,000 |
| Installation costs | 125,000 |
| Payment for site power expenses Payment for administration expenses | 25,000 20,000 |
| Materials on site: 31st December 2016 | 100,000 |
| Value of work certified | 27,500 |
| Cost of work not yet certified | 800,000 |
| Cash received | 50,000 |
|
| 750,000 |
Required:
The contract account as it appears in the books of Kazi bora Builders (10 marks)
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