neeraj (no) (392 Points)
07 July 2014x ltd. undertook 2 contracts for construction of bridge & road, follwing are on 31-3-2010
contract 1 contract 2
contract price 560 900
cost incurred 410 50
estimated future cost 290 910
progessive payment 375 45
what amt. should be recognised as provision for loss
ans. contract 1 loss to be recognized rs.82 lakh & provision=58 lakh
contract 2 provision 60
why the 2nd contract the provision is 60 lakh
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 07 July 2014
neeraj
(no)
(392 Points)
Replied 08 July 2014
| Originally posted by : Tribhuvan Aditya Singh | ||
 |
since the degree of completion is not more than 50% in case of contract 2, therefore no profit or loss has been recognised and only provision has been made. |  |
thnx
but can u plz quote the para no. which tell such thing....i checked whole AS not found
Tribhuvan Aditya Singh
(Student as well as Self-employed)
(3710 Points)
Replied 08 July 2014
neeraj
(no)
(392 Points)
Replied 08 July 2014
| Originally posted by : Tribhuvan Aditya Singh | ||
|
i dont know how were you looking it for.... but everything is clearly given in paragraph 21 to 35 of AS-7. | |
I rechecked the para 21-35 but not found anywhere that since completion level is below 50% no profit/loss will be recognised. plz can u quote exact para for that....
neeraj
(no)
(392 Points)
Replied 08 July 2014
| Originally posted by : Tribhuvan Aditya Singh | ||
|
i dont know how were you looking it for.... but everything is clearly given in paragraph 21 to 35 of AS-7. | |
plzreply my friend
CAclubindia
