Question

Calculate cash received given the following details : Materials = Rs. 20000, Work Certified = Rs. 1600000, Work uncertified = Rs. 200000, Retention Rate = 20%

Answer 1

Answer:

Explanation:

The work which has not completed but not certified is work uncertified. work certified and uncertified work will consider as credit  side of the contracter account .

work certified + uncertified = 1600000 + 200000

                                              = 1800000

Retention rate  = 20 %

cash received =1800000 - (1800000 × 20 /100)

                          = 1800000  - 360000

                          = 1440000.