An amount of `9,90,000 was incurred d on a contract work upto 31.03.20 17. Certificate t e s have been received to date to the value of `12,00,000 against which `10,80,000 has be e n received in cash. The cost of work done but not certified amounted to `22,500. It is estimated that by spending an additional amount of `60,000 (including provision for contingencies) the work can be completed in all respects in another two months. The agreed contract price of work is `12,50,000. Compute a conserva tive estima te of the pr of it to be taken to the Profit and Loss Account as per AS – 7

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The detailed answer for the above question is provided below As per AS 7 when the outcome ... View the full answer