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How much would the company recognise as the profit

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Reference no: EM132616256

A company has the following information in relation to a construction contract at 31 December 2019.

Contract

£

Contract price                                          500,000

Costs incurred to date                               275,000

Estimated future costs to completion          275,000

Amounts invoiced to clients                     200,000

Amounts received from clients                  150,000

Assume that this contract satisfies all the conditions for recognising revenue over time. The company uses the percentage of completion as the basis to determine the cost over time.

Problem (i) How much would the company recognise as turnover for this contract?

Problem (ii) How much would the company recognise as the profit for this contract?

Problem (iii) How much would the company recognise as the amount due from customers relating to this contract?

 

Reference no: EM132616256

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