Solution-Prepare contractee account and value of

Prepare contractee account and value of work-in-progress

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Reference no: EM132573688

Sunkanmi Ltd., commenced work on shopping complex for Ona Ara Local Government on 1 st January, 2019. The contract price is N8, 100,000. As at 31st December, 2019 the following cost have been incurred by contractor:
N'000

Machineries and equipment purchased      810
Labour cost as at 31 st December        1,620
Materials sent to site                           2,025
Direct cost                                           324
Establishment expenses                             675
Materials unused at 31 st December               203
Materials returned to store                            68
Labour cost unpaid as at 31st December          67
Direct cost unpaid as at 3 1 st December            14
Value of machineries and equipment at 31 st December 540
Cost work not yet certified                              405
Cash received so far                                        4,860

As at 31st December, 2019, the certificate of work approved amounted to N5,400,000. It is the policy of the Local Government to keep 10% of contract price as a retention fees.

Required:

Question 1: Prepare the contract account, contractee account and value of work-in-progress.

Reference no: EM132573688

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Prepare contractee account and value of work-in-progress

Reference no: EM132573688

Reference no: EM132573688

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