As7

Pankaj kumar (Student) (160 Points)

23 December 2014

pls help me to provide a short summary of as 7

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CA ANKUSH AGGARWAL (CHARTERED ACCOUNTANT) (2782 Points)
Replied 23 December 2014

May be it helps

dilip Kumar (SR.Account manager) (21 Points)
Replied 26 December 2014

First- Revenu recognisations

Second -Profit and loss

third-Provision for loss

First.Revenu reconisations:

revenu Reconisations will be based on Completions of works

Complitions of works =Cost incured /cost incured +estimated cost

Example :

Contract cot =2500000

cost incured =1000000

estimated to be incured =1700000

Complitions %=1000000/1000000+1700000=37%

Profit and loss account:

Revenue (2500000*37%)=9250000

Less: cost incured =1700000

provision for loss=1319595

total loss=2094555

Calcolations of provision for loss:

=775000**63/.37

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