When the work certified is frac14 or more but less than half of the contract price the notional prof...........

Costing ( Revenue Account ) Methods of Costing

When the work certified is ¼ or more but less than half of the contract price, the notional profit to be credited to Profit and Loss account will be equal to:

1/3^rd of Notional Profit x cash received/ Work certified

½ of Notional Profit x cash received/ Work certified

2/3^rd of Notional profit x cash received/ Work certified

100% of Notional Profit.

छोटे Courses बड़े Results

Master Methods of Costing

Prepare through Micro-courses

Try Now

Explanation:

If work certified is less than 25% of contract price, nothing is transferred to Profit and Loss Account
If work certified is 25% or more but less than 50% of contract price,

Amount transferred to Profit and Loss account=

Notional Profit x 1/3 x Cash Received/work certified.