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AS 7

Accountancy

3 year contract Incurred cost 1st year =30 L Estimated additional cost = 90 L Total Contract Value = 112 L Assume work is completed to the extend of 75% by the end of year 2 Find total expense to be recognised in year 1

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Yadhav yky

Yadhav yky

CA Inter

0

26-Nov-24 15:48

481

Answers (1)

Revenue = 28 lacs cost = 30 Lacs Loss - 2 lacs Expected loss = 8 lacs. So provision of 6 lacs is made. Total expenses = 36 lacs.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

26-Nov-24 16:02

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