mactar have a series of contracts to resurface sections of motorways the scale of th 1572109

MACTAR have a series of contracts to resurface sections of motorways. The scale of the contract means several years’ work and each motorway section is regarded as a separate contract.

Required:

From the following information, calculate for each contract the amount of profit (or loss) you would show for the year and show how these contracts would appear in the statement of financial position with all appropriate notes.

The M62 contract has had major difficulties due to difficult terrain, and the contract only allows for a 10% increase in contract sum for such events.