TK Constructions undertook the construction of Bridge on 01/04/2021.The contract was to be completed in 2 years. The contract price was estimated at Rs.150 Crores. Upto 31/03/2021 the company incurred Rs.120 Crores on the construction. The engineers involve in the project estimated that a further Rs.45 Crores would be incurred for completing work. What amount should be charged to revenue for the year 2020-21 as per the provisions of Accounting Standard -7 Construction Contracts? Show the extract of the Profit & Loss A/c in the books of TK Constructions.

TK Constructions undertook the construction of Bridge on 01/04/2021.The contract was to be completed in 2 years. The contract price was estimated at Rs.150 Crores. Upto 31/03/2021 the company incurred Rs.120 Crores on the construction. The engineers involve in the project estimated that a further Rs.45 Crores would be incurred for completing work. What amount should be charged to revenue for the year 2020-21 as per the provisions of Accounting Standard -7 Construction Contracts? Show the extract of the Profit & Loss A/c in the books of TK Constructions.

Individual Income Taxes

43rd Edition

ISBN:9780357109731

Author:Hoffman

Publisher:Hoffman

Chapter18: Accounting Periods And Methods

Section: Chapter Questions

Problem 57P

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