QUEESTION FOUR

Dell Construction Limited $($DCL$)$ took a contract in $2020$ for the construction of road. The contract price was R$1000000,$ and it is estimated that the cost of completion will be R$920000.$ The company R$360000$ representing $90\%$ of work certified. Work not yet certified was R$10000.$ Expenditure incurred on the contract during $2020$ was as follows:

Material

Material damages

Damaged material sold for

Plant depreciated by $25\%$

R$50000$

R$5000$

R$1000$

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.