Q. AB Ltd. has signed at 31st December, 2017 the Balance Sheet date, a contract where the Total Revenue is estimated at ` 15 Crores and Total Cost is estimated at ` 20 Crores. No work began on the contract. Is the Contractor required to give any accounting effect for the year ended 31st December, 2017? (Solved)
1. Recognize expected loss of `5 Crores
2. Recognize `15 Crores as Profit
3. No entry
4. None of the above
- a. Recognize expected loss of `5 Crores