Page 24 - 19. COMPILER QB - INDAS 115
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Working Notes:
1. Table showing calculation of total revenue, expenses and profit or loss on contract for the year
Rs in lakh
A & Co. B & Co. Total
Revenue from contracts (40 x 30%) = 12 (30 x 20%) = 6 18
Expenses due for the year (34 x 30%) = 10.2 (24 x 20%) = 4.8 15
Profit or loss on contract 1.8 1.2 3
2. Calculation of amount due from / (to) customers
Rs in lakh
A & Co. B & Co. Total
Billing on the basis of revenue recognised in the 12 6 18
books
Payments received from the customers (13) (9.5) (22.5)
Advance received from the customers 1 3.5 4.5
3. Work in Progress recognised as part of contract asset at the end of the year
Rs in lakh
A & Co. B & Co. Total
Total actual cost incurred during the year 16 8 24
Less: Cost recognised in the books for the year 31.3.2019 (10.2) (4.8) (15)
Work-in-progress recognised at the end of the year 5.8 3.2 9.0
Alternate Answer -
Additional rectification cost of Rs 2 lakh has been treated as normal cost. Hence total expected cost has been
considered as Rs 34 lakh. However, in case this Rs 2 lakh is treated as an abnormal cost, then expense
due for the year would be Rs 11.6 lakh (i.e. 30% of Rs 32 lakh + Rs 2 lakh). Accordingly, with respect to A
& Co., the profit for the year would be Rs 0.4 lakh and work-in-progress recognised at the end of the year
would be Rs 4.4 lakh.
Working Notes:
1. Table showing calculation of total revenue, expenses and profit or loss on contract for the
year Rs in lakhs
A & Co. B & Co. Total
Revenue from contracts 12 6 18
Expenses due for the year 11.60 4.80 16.40
Profit or loss on contract 0.40 1.20 1.60
2. Work in Progress recognised as part of contract asset at the end of the year
Rs in lakhs
A & Co. B & Co. Total
Total actual cost incurred during the year 16 8 24
Less: Cost recognised in the books for the year 31.3.2019 (11.60) (4.80) (16.40)
Work-in-progress recognised at the end of the year 4.40 3.2 7.60
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