Total cost incurred to date rupees 120000 to complete 60% of the contract work. However architect gave certificate only for 50% of the contract price. Cost of work uncertified is rupees?
Answers
Given:
The cost incurred to date=Rs.1,20,000
Percentage of the work completed =60%
Work certified by Architect= 50%
To find:
Cost of work uncertified
Solution:
We can find the cost by following a few simple steps-
We know that the cost of uncertified work can be calculated by dividing the product of cost incurred to date and the percentage of uncertified work by the percentage of work done to date.
Cost of uncertified work= Cost incurred to date× percentage of work uncertified/ percentage of work done till date
The percentage of work uncertified= Percentage of work done till date- the percentage of work certified
=60%-50%
=10%
Using the information given, we get
Cost of uncertified work= 1,20,000×10/60
=2,000×10
=Rs.20,000
Therefore, the cost of work uncertified is Rs.20,000.