A construction contractor has a fixed price contract for 9,000 lacs to bulld a bridge in...

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A construction contractor has a fixed price contract for 9,000 lacs to bulld a bridge in 3 years time frame. A summary of some of the financlal data is as under: (Amount in lacs) Year 1 Year 2 Year 3 Inltlal Amount for revenue agreed in contract Varlation in Revenue (+) Contracls costs Incurred up lo the reporting date Estimated profit for whole contract 9,000 9,000 9,000 200 200 2,093 6,168* 8,100** 950 1,000 1,000 *Includes 100 lacs for standard materials stored at the site to be used in year 3 to complete the work. ** Excludes 100 lacs for standard material brought forward from year 2. The varlation In cost and revenue in year 2 has been approved by customer. Compute year wise amount of revenue, expenses, contract cost to complete and profit or loss to be recognized In the Stat ement of Profit and Loss as per AS -7 (revised). A construction contractor has a fixed price contract for 9,000 lacs to bulld a bridge in 3 years time frame. A summary of some of the financlal data is as under: (Amount in lacs) Year 1 Year 2 Year 3 Inltlal Amount for revenue agreed in contract Varlation in Revenue (+) Contracls costs Incurred up lo the reporting date Estimated profit for whole contract 9,000 9,000 9,000 200 200 2,093 6,168* 8,100** 950 1,000 1,000 *Includes 100 lacs for standard materials stored at the site to be used in year 3 to complete the work. ** Excludes 100 lacs for standard material brought forward from year 2. The varlation In cost and revenue in year 2 has been approved by customer. Compute year wise amount of revenue, expenses, contract cost to complete and profit or loss to be recognized In the Stat ement of Profit and Loss as per AS -7 (revised).

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As per AS7 Construction Contract revenue will be booked as per of completion basis Yea... View the full answer