06-03-2006, 06:54 AM
Asalaam o alaikum
I have a question regarding construction accounting
In the B/S
W.I.P = costs incurred to date + profit recognized i.e. charged 2 P/L (this is zuberiâs treatment)
Or
W.I.P=value of work certified + cost of work uncertified (this is our acc. Teacher's treatment)
Yes W.I.P may be the same in both cases But what is the right treatment?
Plz give answer n back up with logical reasoning
I have a question regarding construction accounting
In the B/S
W.I.P = costs incurred to date + profit recognized i.e. charged 2 P/L (this is zuberiâs treatment)
Or
W.I.P=value of work certified + cost of work uncertified (this is our acc. Teacher's treatment)
Yes W.I.P may be the same in both cases But what is the right treatment?
Plz give answer n back up with logical reasoning