Question

When cash is received from contractee which account should be credited

Answer 1

Answer:

(Rs 20,000 x 100)/80 = Rs 25,000. (c) The contract account is credited with the value of the certified work and work-in-progress account is debited. Whenever any amount is received from the contractee, cash account is debited and contractee's account is credited.

OR

When cash is received from contractee Contractee a/c should be credited.