Prepare the Contract Account for Botswana Building Contractors Ltd (BBCL) for the year ended 31 March 2026, including calculations for total debits, total credits, notional profit, and percentage of c

$$\begin{align*} \text{Percentage of Completion} &= \frac{\text{Value of work certified}}{\text{Contract price}} \times 100 \\ &= \frac{P1,350,000}{P3,200,000} \times 100 \\ &= 42.1875\% \end{align*}$$

Since the percentage of completion is between 25% and less than 50%, the profit to be recognized is calculated as $\frac{1}{3} \times \text{Notional Profit} \times \frac{\text{Cash Received}}{\text{Work Certified}}$.

$$\begin{align*} \text{Work-in-Progress Reserve} &= \text{Notional Profit} - \text{Profit to P\&L A/c} \\ &= P235,000 - P63,889 \\ &= P171,111 \end{align*}$$

Here is the Contract Account:

$$\begin{array}{|l|r|l|r|} \hline \textbf{Particulars} & \textbf{Amount (P)} & \textbf{Particulars} & \textbf{Amount (P)} \\ \hline \text{To Materials issued to site} & 420,000 & \text{By Plant written-down value (closing)} & 72,000 \\ \text{To Direct labour costs} & 380,000 & \text{By Materials on site (closing)} & 18,000 \\ \text{To Subcontractor costs} & 160,000 & \text{By Work-in-Progress c/d (Value of work certified)} & 1,350,000 \\ \text{To Site overheads} & 85,000 & & \\ \text{To Head office overhead apportioned} & 40,000 & & \\ \text{To Plant charged to contract at cost} & 120,000 & & \\ \text{To Notional Profit c/d} & 235,000 & & \\ \hline \textbf{Total} & \textbf{1,440,000} & \textbf{Total} & \textbf{1,440,000} \\ \hline \text{To Profit and Loss A/c (Profit recognized)} & 63,889 & \text{By Notional Profit b/d} & 235,000 \\ \text{To Work-in-Progress Reserve A/c} & 171,111 & & \\ \hline \textbf{Total} & \textbf{235,000} & \textbf{Total} & \textbf{235,000} \\ \hline \end{array}$$

The final answer is presented in the table above.