Lesson Notes By Weeks and Term - Senior Secondary 3

Contract account II

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Term: 2nd Term

Week: 2

Class: Senior Secondary School 3

Age: 17 years

Duration: 40 minutes of 2 periods each

Date:       

Subject:      Financial accounting

Topic:-       Contract account II

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

  1. Describe the format of contract account
  2. Solve exercises on contract account

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

PRESENTATION

TEACHER’S ACTIVITY

STUDENT’S ACTIVITY

STEP 1

INTRODUCTION

The teacher reviews the previous lesson on contract account

Students pay attention

STEP 2

EXPLANATION

She describes the format of a contract account

Students pay attention and participates

STEP 3

DEMONSTRATION

She solves some exercises on contract account

Students pay attention and participate

 

STEP 4

NOTE TAKING

The teacher writes a summarized note on the board

The students copy the note in their books

 

NOTE

CONTRACT ACCOUNT

EXAMPLES

A company's contract ledger shows the following details in respect of Contract No. 50, which commenced on 1 April 2019.

The contract was completed by 31 March 2020 at a contract price of $200,000.

The values of the materials and plant returned to store on 31 March 2020 were $6,000 and $12,000, respectively. The contract price was received in full on 31 March 2020.

Required: Prepare a contract account and contractee's personal account.

Solution

 

 

  1. The following is the summarized record as on 31 March 2019 relating to Contract No. 414 completed during the year.

Required: Prepare the contract account from the above particulars.

Solution

EVALUATION:   

  1. From the following particulars, write up the Contract No. 5 Account and

find the value of the tender (contracted) price.

Provide 60% on productive wages for works overheads and 12.5% on

works cost for office overhead. Profit to be realized is 15% on the tender

price.

  1. On 1 April 2019, Contractors Ltd. started building a cinema hall at a

contract price of $600,000. During the year ended 31 March 2020, they

incurred the following expenses:

Work to the value of $120,000 had been certified on 31 March 2020, of

which 75% had been received in cash.

The cost of work completed but not certified was $10,500. Materials valued

at $5,000 were on hand at site.

 

Required: After allowing for depreciation @ 20% p.a. on plant, prepare

an account showing the profit earned to date and the amount of profit in

the company's accounts on 31 March 2020. Also, prepare a work in

progress account.

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively