Explain how you would treat and record each of the following cost information when preparing the contract account for a construction contract of H.Young ltd a construction company that has been operating in Kenya for the last three years. The company purchased building materials including cement,sand,paint,roofing tiles and other material at a cost of Shs 250,000,000 Some of the purchased building materials were defective and were returned to the supplier.These materials had been purchased at a cost of Shs 23,000,000. A huge fire at the contract site destroyed building materials valued at Shs 35,000,000 The company purchased a construction crane at a purchase cost of 20,000,000 The company hired dynamics networking company to install electrical cables in the building at a cost of 8,500,000 The manual construction workers hired for the contract during the year were paid 45,000,000.
Explain how you would treat and record each of the following cost information when preparing the contract account for a construction contract of H.Young ltd a construction company that has been operating in Kenya for the last three years. The company purchased building materials including cement,sand,paint,roofing tiles and other material at a cost of Shs 250,000,000 Some of the purchased building materials were defective and were returned to the supplier.These materials had been purchased at a cost of Shs 23,000,000. A huge fire at the contract site destroyed building materials valued at Shs 35,000,000 The company purchased a construction crane at a purchase cost of 20,000,000 The company hired dynamics networking company to install electrical cables in the building at a cost of 8,500,000 The manual construction workers hired for the contract during the year were paid 45,000,000.
Chapter16: Accounting Periods And Methods
Section: Chapter Questions
Problem 41P
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- Explain how you would treat and record each of the following cost information when preparing the contract account for a construction contract of H.Young ltd a construction company that has been operating in Kenya for the last three years.
- The company purchased building materials including cement,sand,paint,roofing tiles and other material at a cost of Shs 250,000,000
- Some of the purchased building materials were defective and were returned to the supplier.These materials had been purchased at a cost of Shs 23,000,000.
- A huge fire at the contract site destroyed building materials valued at Shs 35,000,000
- The company purchased a construction crane at a purchase cost of 20,000,000
- The company hired dynamics networking company to install electrical cables in the building at a cost of 8,500,000
- The manual construction workers hired for the contract during the year were paid 45,000,000.
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