Multiple choice

Calculate notional profit on a contract undertaken of which 80% work has been completed.

Total expenditure to date - Rs. 95,000 Estimated further expenditure to complete the contract (including contingencies) - Rs. 34,000 Contract price - Rs. 1,83,000 Work certified - Rs. 2,02,000
Work not certified - Rs. 8,500
Cash received - Rs. 81,600

  1. Rs. 1,10,500

  2. Rs. 1,15,500

  3. Rs. 1,12,500

  4. Rs. 1,15,200

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 It is 1,15,500 Notional Profit -              Work Certified -                                  Rs 2,02,000            + Work Uncertified                                Rs      8,500                  Total Work Done                               Rs 2,10,500   Less - Costs incurred till date                       Rs  95,000            Notional Profit                                       Rs 1,15,000     Note = Rs 34,000 is to be accounted for calculating total estimated profit, not for calculating notional profit.

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