Nishant Kumar (Student) (326 Points)
21 May 2011
Is any treatment required to be made in the contract account related to escalation clause?
Also,
What treatment is made if the total estimated contract cost is more than the contract price???
Please Help.
Shruthi
(PCC Student)
(111 Points)
Replied 16 June 2011
If the total estimated contract cost comes more than the contract price then never recognize any profit and provide for the estimated loss which is the difference amount between the two.
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