Practice questions:
Cat brook Construction Ltd is undertaking a contract where the price is £320,000 and the estimated total cost of the contract is estimated at £260,000. At the end of the financial year the cost of work certified is £140,000 and the cost of work done but not certified is £34,000.
The company intends to calculate its profit at the year end using costs as the basis of the estimated degree of completion.
What is the share of profit at the year end on the incomplete contract?