On 1 July 2020, Construction Namibia Ltd (CN) started work on the construction of a block...

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On 1 July 2020, Construction Namibia Ltd (CN) started work on the construction of a block of holiday flats for a contracted price of N$1 150 000 with completion promised by 30 November 2021. The construction company's financial year end was 31 December 2020 and on that date the accounts appropriate to the contract contained the following balances: Materials issued to site Materials returned from site Wages paid Own plant in use on site, at cost Hire of plant and scaffolding Supervisory staff: Direct Indirect N$202 000 N$10 000 N$168 000 N$106 000 N$85 000 N$25 000 N$10 000 N$75 000 N$550 000 Head office charges Cash received related to work certified Estimated cost to complete contract N$540 000 Additional information: Depreciation on own plant to be provided at the rate of 20% per annum on cost. N$15 000 is owing for wages. Estimated value of materials on site is N$14 000. No difficulties are envisaged during the remaining time to complete the contract. Mark Requirement Sub- Total total Prepare the contract account for the period ended 31 December 2020, and show the amount to be included in the construction company's statement of profit or loss for that period. Note: Show all the necessary workings or steps that are required to reach the answer. Marks are available for these Total 4.1 25 25 25 On 1 July 2020, Construction Namibia Ltd (CN) started work on the construction of a block of holiday flats for a contracted price of N$1 150 000 with completion promised by 30 November 2021. The construction company's financial year end was 31 December 2020 and on that date the accounts appropriate to the contract contained the following balances: Materials issued to site Materials returned from site Wages paid Own plant in use on site, at cost Hire of plant and scaffolding Supervisory staff: Direct Indirect N$202 000 N$10 000 N$168 000 N$106 000 N$85 000 N$25 000 N$10 000 N$75 000 N$550 000 Head office charges Cash received related to work certified Estimated cost to complete contract N$540 000 Additional information: Depreciation on own plant to be provided at the rate of 20% per annum on cost. N$15 000 is owing for wages. Estimated value of materials on site is N$14 000. No difficulties are envisaged during the remaining time to complete the contract. Mark Requirement Sub- Total total Prepare the contract account for the period ended 31 December 2020, and show the amount to be included in the construction company's statement of profit or loss for that period. Note: Show all the necessary workings or steps that are required to reach the answer. Marks are available for these Total 4.1 25 25 25

Answer rating: 100% (QA)

Calculation To Materials 202000 To Wages 168000 To Depreciation expense July to Dec 6 months 1060002... View the full answer