The terms of contract provide that whole of the amount shown by the architect's certificate shall not be paid immediately but a percentage thereof shall be paid. The amount not paid is termed as —
CS Executive · Cost and Management Accounting · PYQS · December 2014
The terms of contract provide that whole of the amount shown by the architect's certificate shall not be paid immediately but a percentage thereof shall be paid. The amount not paid is termed as —
Answer & Explanation:
Correct Answer: Option (B)
Correct answer: (B) Retention money.
Topics: Contract Costing
Related Questions in this Topic
- 92. A contract is completed to the extent of two-third. It shows a loss of ₹1,20,000 at the end of the accounting period...
- 76. In contract costing, which of the following clauses provides safeguard against any fluctuation in the prices of mate...
- 28. XYZ contractor provides the following information: Contract price is ₹4,00,000. Cash received on account was ₹3,00,0...
- The cost of sub-contracts is :
- Value of work certified + Cost of work uncertified - Reserve for unrealised profit - Amount received from the contractee...