As-7

Cost Accounts 575 views 3 replies

Mihir Manohar

CA Final - Article Assistant

474 Points Joined June 2012

An amount of Rs 9,90,000 was incurred on a contract work upto 31-3-2010. Certificates have been received to date to the value of Rs 12,00,000 against which Rs10,80,000 has been received in cash. The cost of work done but not certified amounted to Rs22,500.It is estimated that by spending an additional amount of Rs60,000 (including provision for contigencies) the work can be completed in all respects in another two months.The agreed contract price of work is RS12,50,000.Compute a conservative estimate of the profit to be taken to the Profit and Loss Acoount as per AS-7

Replies (3)

Deepak Gupta

CA Student

15927 Points Joined May 2011

Originally posted by : Mihir Manohar
	An amount of Rs 9,90,000 was incurred on a contract work upto 31-3-2010. Certificates have been received to date to the value of Rs 12,00,000 against which Rs10,80,000 has been received in cash. The cost of work done but not certified amounted to Rs22,500.It is estimated that by spending an additional amount of Rs60,000 (including provision for contigencies) the work can be completed in all respects in another two months.The agreed contract price of work is RS12,50,000.Compute a conservative estimate of the profit to be taken to the Profit and Loss Acoount as per AS-7

Question from Nov 2010 IPCC Accounting Paper.
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Kindly refer to Q.7(c) on Page No. 27 for ICAI suggested answer from the file attached herewith.

Mihir Manohar

CA Final - Article Assistant

474 Points Joined June 2012

Hey thanks Deepak... can you send me the link where i can get such solved answers of the past papers?.... I am in great need of that.

Deepak Gupta

CA Student

15927 Points Joined May 2011

Originally posted by : Mihir Manohar
	Hey thanks Deepak... can you send me the link where i can get such solved answers of the past papers?.... I am in great need of that.

Archives - Suggested Answers - IPCC

https://www.icai.org/post.html?post_id=6380
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> May 2012

Professional Competence Course (PCC)

(Posting PCC Suggested Answers as well since the syllabus was the same, except few topics)

https://www.icai.org/post.html?post_id=5547
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> Compilation of Suggested Answers Professional Competence Course( PCC) Advanced Accounting

> Compilation of Suggested Answers Professional Competence Course( PCC) Cost Accounting

> Compilation of Suggested Answers Professional Competence Course( PCC) Financial Management