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Prepare the contract account and calculate the profit.
Accounting
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Here are the required accounts and profit calculation:
i) Contract Account
Step 1: Calculate total costs incurred.
\begin{align*} Material to the site &= KSh 21,500,000 \\ Cost of labor &= KSh 3,600,000 \\ Plant installed &= KSh 18,000,000 \\ Direct expenses &= KSh 4,800,000 \\ Administration charges &= KSh 1,750,000 \\ \textWas this helpful?
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