SB Construction Limited has entered into a big contract at an agreed price of $ 1,50,00,000 subject to an escalation clause for material and labour as spent out on the contract and corresponding actuals are follows : Phases Estimate Original Revised up- todate Actual Contract Cost Price 2$ 2$ 1. Certified 60,000 64,000 62,000 80,000 2. Completed but not certified 20,000 3. Completed 75% 2. Completed 25% 5. Incomplete 22,000 21,000 30,000 20,000 22,000 16,600 26,000 40,000 48,000 12,400 60,000 24,000 30,000 28,000 1'64'000 1,86,000 1,12,000 2,24,000 You are required to: (1) Give your analysis of admissible escalation claim and determine the final contract price payable. Prepare the contract account, if the all expenses other than material and labour related to the contract are $ 13,45,000. (II)

SB Construction Limited has entered into a big contract at an agreed price of $ 1,50,00,000 subject to an escalation clause for material and labour as spent out on the contract and corresponding actuals are follows : Phases Estimate Original Revised up- todate Actual Contract Cost Price 2$ 2$ 1. Certified 60,000 64,000 62,000 80,000 2. Completed but not certified 20,000 3. Completed 75% 2. Completed 25% 5. Incomplete 22,000 21,000 30,000 20,000 22,000 16,600 26,000 40,000 48,000 12,400 60,000 24,000 30,000 28,000 1'64'000 1,86,000 1,12,000 2,24,000 You are required to: (1) Give your analysis of admissible escalation claim and determine the final contract price payable. Prepare the contract account, if the all expenses other than material and labour related to the contract are $ 13,45,000. (II)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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