mars consultancy ltd get a contract of 500 cr to build an elevated road tp be completed in - Accountancy - Introduction to Accounting

Question

mars consultancy ltd get a contract of 500 cr to build an elevated
road tp be completed in 5 years tge director want to determine the
profit or loss only after the completion of the contract do you
agree with the director or not give reason for your answer

Komal Rani · Accepted Answer

Dear student No, the viewpoint of director of Mars consultancy
limited is not correct because in contract accounting, every year
we have to prepare the contract accounts in which we can ascertain
the profit or loss from the jobs done in order to complete a
particular contract So they have to prepare contract account for
the ascertainment of profit and loss every year till the the
contract is completed Regards

mars consultancy ltd. get a contract of 500 cr. to build an elevated road tp be completed in 5 years . tge director want to determine the profit or loss only after the completion of the contract do you agree with the director or not give reason for your answer