Question: OC signed a contract to provide office cleaning services for an entity for a period of one year from 1 October 2009 for a fee

OC signed a contract to provide office cleaning services for an entity for a period of one year from 1 October 2009 for a fee of R500 per month. The contract required the entity to make one payment to OC covering all twelve months service in advance. The contract cost to OC was estimated at R300 per month for wages, materials and administration costs. OC received R6,000 on 1 October 2009. How much profit/loss should OC recognise in its statement of comprehensive income for the year ended 31 March 2010?

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