Cs cost accounts

This query is : Resolved

Shruthi (Querist)
Follow

07 September 2013 from the follg compute a conservative estimate of profit on a contract by four different methods. The contract is 80% complete.

Total expenditure to date ----- 85000

Estimated further exp to -------- 17000
complete the contract

Contract price ----------------- 153000

work certified ----------------- 100000
work not certified ------------8500

cash received ------------------ 81600.

Thanks in advn

CA Pallav Singhania

CA Pallav Singhania (Expert)
Follow

07 September 2013 1.

2/3 X Cash Received/ Work certified X Notional profit..

Notional Profit = {100000+8500} - 85000
= 23500

2/3 X 81600/100000 X 23500

=12784

2.

Estimated Profit = 153000 - {85000+ 17000}
= 51000

EP X Cash Received / Contract Price

= 27200

3.

EP X Work Certified / Contract Price

51000 X 100000 / 153000
= 33333.33

4.

Total Cost ={85000+17000}= 102000

EP X Cost Incurred till date / Total Cost

51000 X 85000/102000
= 42500

5.

2/3 X NP X WC / CP

2/3 X 23500 X 100000/ 153000
= 10239.23

Regards,

Shruthi

Shruthi (Querist)
Follow

07 September 2013 Thanks for reply....

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

THUSHAR MURALI KRISHNA

ACCFIN SOLUTIONS

Vishal Kapadiya

Sagar Khakhiwala

JAYDEEP MITRA

Subscribe Now

Cs cost accounts

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

GST CONSULTANCY

GST CONSULTANT

CA Final

Accountant

Manager- Finance and Compliance