Question: . Sunkanmi Ltd., commenced work on shopping complex for Ona Ara Local Government on 1st January, 2019. The contract price is N8,100,000. As at 31st

Sunkanmi Ltd., commenced work on shopping complex for Ona Ara Local Government on 1st January, 2019. The contract price is N8,100,000. As at 31st December, 2019 the following cost have been incurred by contractor: Machineries and equipment purchased Labour cost as at 31st December Materials sent to site Direct cost Establishment expenses N'000 810 1,620 2,025 324 675 203 Materials returned to store 68 Labour cost unpaid as at 31st December 67 Direct cost unpaid as at 31st December 14 Value of machineries and equipment at 31st December 540 Cost work not yet certified 405 Cash received so far 4,860 Materials unused at 31st December 5,400,000. It is the As at 31st December, 2019, the certificate of work approved amounted to policy of the Local Government to keep 10% of contract price as a retention fees. Required: Prepare the contract account, contractee account and value of work-in-progress.

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Understanding the Problem Problem Prepare a contract accountcontractee accountand calculate the value of workinprogress based on the given data Key Information Contract priceN8100000 Costs incurredMac... View full answer

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