25) The total profit on a contract for Rs.3,00,000 is Rs. 60,000 and the contract is 60%
complete and has been certified accordingly the retention money is 20% of the
certified value then the amount of profit that can be prudently to profit and loss
a) Rs.60,000
d) Rs.48,000
b)Rs.36,000
C) Rs.28,800
Answers
Answer:
Answer is ₹28,800 as per Manan Prakashan
Given,
Total money = Rs. 3,00,000
Total profit = Rs. 60,000
Retention money = 20%
Contract is 60% completed
To Find,
The amount of profit that can be prudent to profit and loss =?
Solution,
The contract is 60% done so profit will be certified = 60% of the total profit
The contract is 60% done so profit will be certified = 60% of 60000
The contract is 60% done so profit will be certified = (60*60000)/100
The contract is 60% done so profit will be certified = Rs. 36000
Now retention money = 20% of the certified profit
The retention money = 20% of 36000
The retention money = (20*36000)/100
The retention money = (2*3600)
The retention money = Rs. 7200
The profit after retention = 36000 - 7200
The profit after retention = Rs. 28,800
Hence, the amount of profit that can be prudent to profit and loss is
Rs. 28,800.Option(c) is the correct answer.