Muronga Ltd supplied the following details regarding a contract that was still in progress at the end
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Question:
Muronga Ltd supplied the following details regarding a contract that was still in progress at the end of the accounting period ended 29 February 2019:
Contract price
N$100 000
Cost to date
N$60 000
Estimated costs to completion
N$12 000
Sales value of work certified
N$75 000
Cost of certified work
N$50 000
Retention amount
N$7 500
Required:
Mark
Calculate the amount of profit on this contract that may be transferred to the profit and loss account for the past accounting period, using each of the following methods:
The work certified method
The percentage of completion method
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