financial managemant, Task - 01 During its financial year ended 30 June 20x7 Beavers, Financial Management

financial managemant, Financial Management

Assignment Help:

Task - 01

During its financial year ended 30 June 20x7 Beavers Ltd, an engineering company, has worked on several contracts. Information relating to one of them is given below.

Contract X201
Date Commenced 1 July 20X6
Estimated Completion Date 30 Sept 20X7
Contract Price RO 240,000
Proportion of work certified as satisfactorily completed (and invoiced) up to June 20X7 RO 180,000
Amount received from contractee RO 150,000
Costs up to 30 June 20X7
Wages RO 91,000
Material sent to site RO 36,000
Other contract costs RO 18,000
Proportion of head office costs RO 6,000
Plant and equipment transferred to the site (at book value on 1 July 20X6) RO 9,000
The plant and equipment is expected to have a book value of about RO 1,000 when the contract is completed.
Stock of materials at site on 30 June 20X7 RO 3,000
Expected additional costs to complete the contract
Wages RO 10,000
Materials (including stock at 30 June 20X7) RO 12,000
Other (including head office costs) RO 8,000
Company policy is to recognize profit on contracts as follows
Profit to be recognized = {Value of work certified / Total contract value} x Estimated total
Contract Profit

a) Prepare the Contract account.
b) The profit to be recognized on the Contract to date.
c) The amount to be shown on the company balance sheet as at 30 june 20X7 in respect on Contract X201 are:
a. Stocks
b. Debtors

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages

financial managemant, Financial Management

Related Discussions:- financial managemant

Research and development and marketing costs, a) Product orientated busines...

Price volatility characteristic of bond with embedded option, The price of ...

Discounted pay back period (dpbp), Discounted Pay Back Period (DPBP) : ...

Explain continuous compounding benefit an investor, How does continuous com...

Final Project AFM, Ask questiona) Maju Construction (MCo) Sdn. Bhd. is bidd...

Explain financial ratio, What is a financial ratio? A financial ratio i...

Manage an assignment, Manage a project or clearly defined piece of work fro...

Operating cycle, applicability of an operating cycle in vegetable growing b...

Difference between mortgage bond and a debenture, Difference between mortga...

State about investment decision, State about Investment decision Dec...

Write Your Message!

Featured Services

Online Tutoring

Project Development

Exam Preparation

Course Help

Assignment Help

Popular Subjects

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT