Multiple choice

Calculate total estimated 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. 52,000

  2. Rs. 53,000

  3. Rs. 54,000

  4. Rs. 51,000
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

 It is Rs 54,000  TOTAL ESTIMATED PROFIT       Contract Price                                      -    Rs 1,83,000   Less-  Costs Incurred till date -   Rs 95,000          + Estimated further costs till         Completion of contract   -   Rs 34,000     - Rs 1,29,000        Total Estimated Profit                                   - Rs   54,000

Keep practicing — related questions