Question

If the amount of work certified is less than ____________ of the contract price, then no profit should be taken to Profit and Loss Account.

• A. $20$%
• B. $25$%
• C. $33\frac{1}{3}$%
• D. $40$%

Answer 1

The correct option is B $25$%

Transfer of profit on contract account is depends on the stage of completion of the contract. If the contract completion is less than 25% of the contract price, not profit is to be transferred to profit & loss account.