can you tell me the treatment of escalation clause in contract costing that came in may 10 PCC examination ?
CA Mohit Agrawal (Chartered Accountant) (371 Points)
22 May 2010can you tell me the treatment of escalation clause in contract costing that came in may 10 PCC examination ?
Santhosh Poojary
(SIEMPRE AHÍ PARA TI)
(15607 Points)
Replied 22 May 2010
IT SHOULD BE CREDITED TO CONTRACT A/C. IN ADDITION TO CONTRACT PRICE.
CA Mohit Agrawal
(Chartered Accountant)
(371 Points)
Replied 22 May 2010
please tell me whether the amount of escalation will be the diff betwn (act price*act qty)-(std price*act qty) or (act price*act qty)-(std price*std qty) ?
Santhosh Poojary
(SIEMPRE AHÍ PARA TI)
(15607 Points)
Replied 22 May 2010
DEAR Mohit,
you can refer below mentioned MAY 10 Paper solution for ur Query...
CAclubindia
