When the completion stage of a contract is less than 14, the total expenditure on the contract is transferred to ________.
A
Work-in-progress
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B
Profit and loss account
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C
Miscellaneous account
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D
None of the Above
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Solution
The correct option is A Work-in-progress When a contract completion stage is less than 1/4 , the total expenditure on contract is transferred to work in progress.