Vidyalelo
Commerce · Q166

Costing

Graduate and Post Graduate · Commerce · question 166

Q166

Cost of contract and profit or loss thereon are determined by preparing ________.

A.
cost sheet
B.
profit and loss a/c
C.
trading a/c
D.
separate ledger a/c
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Cost of contract and profit or loss thereon are determined by preparing separate ledger a/c. A separate contract account is prepared for each contract.