question 4.1

Question 4 (25 marks) On 1 July 2020. Construction Namibia Ltd (CN) started work on the construction of a block of holiday flats for a contracted price of NS1 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 NS202 000 Materials returned from site N$10 000 Wages paid NS168 000 Own plant in use on site, at cost N$106 000 Hire of plant and scaffolding N$85 000 Supervisory staff: Direct N$25 000 Indirect N$10 000 Head office charges N$75 000 Cash received related to work certified N$550 000 Estimated cost to complete contract NS540 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 Page 24 of 25 24 Mark Requirement Sub- Total total Prepare the contract account for the period ended 31 December 4.1 2020, and show the amount to be included in the construction 25 25 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 End of Assignment 2 Total Marks Assignment 2: 100 marks