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Chapter 24

Example 2 cont.

Workings

(W1) Contract profit

$m $m
Contract price 30

Costs to date 14
Costs to complete 7

———
(21)

———
Contract profit 9

———

(W2) Stage of completion
Cost basis: cost to date/total cost 14/21 66.7%

(W3) Contract asset $m

Cost to date 14
Profit to date 6
Received from customer (12)

———

8
———

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