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Contract costing

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?

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91352ad7-3d00-4802-bc99-0699859baf8e.jpg

3f9455e1-895d-45ef-8b6c-ee49d01c3483.jpg


Venkatesh Rathinam

Venkatesh Rathinam

CA Inter

13K+

31-Mar-20 14:39

41

Answers (3)

Can you please tell which illustration is it?


ruchi lahoti

ruchi lahoti

Moderator

30-Apr-20 14:10

Can you please tell which illustration is it?

Illustration no. 4 man


Venkatesh Rathinam

Venkatesh Rathinam

CA Inter

13K+

30-Apr-20 14:58

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.


Madhuri Veluri

Madhuri Veluri

Moderator

09-May-20 10:36

Happy Mother's Day
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