Sir, we should actually credit the "COST of Work Uncertified" and "VALUE of Work certified" to arrive at the profits but they have given ...Value of work completed (it is still not certified) but you have credited the same without finding the cost of the work uncertified...why so?
Can you please tell which illustration is it?
Illustration no. 4 man
Notional profit represents the difference between the value of work certified and cost of work certified. Notional profit = Value of work certified - (Cost of work to date - Cost of work not yet certified) Since we are finding the notional profit, we used the above formula in solving it.