shalu gupta (student) (70 Points)
18 October 2012
sreenath
(Articled Assistant)
(219 Points)
Replied 18 October 2012
Degree of Completion= work done upto the date/Total Estimated cost for the Project*100
1.80Cr/3.2Cr*100=56.25%
Revenue should be recognised in the Books =3cr*56.25=1.6875Cr
Loss 1.8cr-1.6875Cr=0.1125Lakhs
know your self
(knowledge is power of student)
(98 Points)
Replied 20 October 2012
@ sreenath can you explain what you have done
As per my opinion:-
If in the year end of 31st mar 2012 there is a notional profit(i.e. cr. balance in contract a/c ) and expected loss at end of contract (i.e. contract price 3cr and total expences is 3.2cr) then you shoul not recognized any profit just make only contingency reserve