The total profit on a contract of ₹3,00,000 is ₹60,000 when the contract is 60% complete and has been certified. If the retention money is 20% of the certified value, the amount of profit that can be prudently credited t
CS Executive · Cost and Management Accounting · PYQS · December 2014
The total profit on a contract of ₹3,00,000 is ₹60,000 when the contract is 60% complete and has been certified. If the retention money is 20% of the certified value, the amount of profit that can be prudently credited to profit and loss account is —
Answer & Explanation:
Correct Answer: Option (B)
Correct answer: (B) ₹32,000. Profit recognised = 60,000×2/3×80% = 32,000.
Topics: Contract Costing
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