Contract price Rs 3 00 000 Total Profit Rs 60 000 The contract is 70 complete Retention money is 30 ...........

Costing - Phase (I & II) Methods of Costing

Contract price = Rs. 3,00,000

Total Profit = Rs. 60,000

The contract is 70% complete

Retention money is 30% of the certified value , the amount of profit that can be prudently credited to profit & loss account is

28,000

12,000

24,000

44,100

Amount to be credited in profit & loss account –
Since the work done is more tan 50% but less than 90%
2 X 60,000 X 70 = Rs. 28,000
3 100

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