Building contractors Ltd undertake contract on 31^st October, 1989 when the actual account were prepared. The position of contract No. 101 which was commenced on...

      

Building contractors Ltd undertake contract on 31^st October, 1989 when the actual account were prepared. The position of contract No. 101 which was commenced on 1^st January, 1989, was as under:


Prepare contract No. 101 account after taking credit for profit which you think reasonable.

  

Answers

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If the contract is almost complete, the profit is ascertained as follows: Profit = Estimated profit on completed contract X (Cash received÷Work certified)

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Wilfykil answered the question on April 16, 2019 at 05:37

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