When the completion stage of the contract is more than half, the profit to be credited to P/L a/c will be equal to ………………..

Question

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When the completion stage of a contract is more than half, the profit to be credited to the Profit and Loss account is often calculated as 2/3 of the notional profit multiplied by the ratio of cash received (CR) to work certified (WC). This method is used to recognize profit progressively in line with the percentage of completion method, reflecting the work that has been completed and billed.

When the Completion Stage of the Contract Is More Than