When the completion stage of the contract is more than half, the profit to be credited to Profit and Loss account will be equal to…………..

Related MCQs

• The disposal cost of abnormal loss is included in the abnormal loss account and therefore in the transfer of the cost of abnormal loss to the statement of profit or loss.
• If the amount of work certified is less than………of the contract price,then no profit should be taken to Profit & Loss Account.
• The difference between total actual loss and normal loss is abnormal loss.
• Cost of defective materials should be……………………to costing P/L account and……………….to contract account.
• The loss incurred on an incomplete contract is transferred to …………….account.
• In some cases, a company might have to pay to dispose of losses in a process. The cost of disposal represents an additional cost to the process. To reflect this in the process account the normal loss is measured at zero but the expected costs of disposal are debited to the process account.
• In a costing system, a job account is similar to a work in progress account, except that it is for one job only. In a company that specialises in jobbing work, the work in progress account is the total of all the individual job accounts.
• When actual loss is less than the expected (normal) loss there is:
• Profit in incomplete contract in known as notional profit because:
• It is possible to have abnormal loss and abnormal gain on the same process account in the same period.