Beetie is a construction company that prepares its financial statements to 31 March each year. During the year ended 31 March 20X6 the company commenced two construction contracts that are expected to take more than one year to complete.
The position of each contract at 31 March 20X6 is:
|
Contract
|
1
|
2
|
|
|
$'000
|
$'000
|
|
Agreed contract price
|
5,500
|
1,200
|
|
Estimated total cost of contract at commencement
|
4,000
|
900
|
|
Estimated total cost at 31 March 20X6
|
4,000
|
1,250
|
|
Agreed value of work completed at 31 March 20X6
|
3,300
|
840
|
|
Progress billings invoiced and received at 31 March 20X6
|
3,000
|
880
|
|
Contract costs incurred to 31 March 20X6
|
3,900
|
720
|
The agreed value of the work completed at 31 March 20X6 is considered to be equal to the revenue earned in the year ended 31 March 20X6. The percentage of completion is calculated as the agreed value of work completed to the agreed contract price.
Required
Calculate the amounts which should appear in the statement of profit or loss and statement of financial position of Beetie at 31 March 20X6 in respect of the above contracts.