Calculate profit to be transferred to Profit and Loss A/c when 75% of work is certified, notional profit is 1,50,000 and cash received is 80% of work certified.

 It is Rs 80,000  Profit to be transferred to Profit and Loss A/c -   Notional Profit  X  2  X  Cash received                                     3       Work Certified 1,50,000 X  2  X  80    =   Rs 80,000                      3      100   As more than 50% of work is certified, we would take 2/3 of profit ascertained as reduced by percentage of cash received from the contractee is to be taken to Profit & Loss A/c