As-7

An amount of Rs 9,90,000 was incurred on a contract work upto 31-3-2010. Certificates have been received to date to the value of Rs 12,00,000 against which Rs10,80,000 has been received in cash. The cost of work done but not certified amounted to Rs22,500.It is estimated that by spending an additional amount of Rs60,000 (including provision for contigencies) the work can be completed in all respects in another two months.The agreed contract price of work is RS12,50,000.Compute a conservative estimate of the profit to be taken to the Profit and Loss Acoount as per AS-7