Mehta Itd. has undertaken bridge construction contract wherein, bridge will be constructed in 3 years. The details of the contracts are as follows:…

Statement showing analysis of the contract details (₹ in crore) Year I Year II Year III (a) Initial revenue agreed 900 900 900 (b) Increase in contract revenue - 20 20 (c) Total Contract Value 900 920 920 (d) Contract cost incurred upto the date of reporting 161 574 820 (e) Estimated cost to complete 644 246 - (f) Total estimated contract 805 820 (805+15) 820 (g) Stage of Completion [(d/f) x 100)] 20% (161/805 x 100) 70% (574/820 x 100) 100% (820/820 x 100) * Note: 10 crore, for material stored at the sites to be used in its 1st year. i.e. in IInd year it is already included so it will be deducted in II year only. Statement showing amount of revenue, expenses and profit to be recognized in the Statement of Profit and Loss in three years (₹ in crore) Upto reporting date Recognised in the prior year Recognized in the current year Year I Revenue (900 x 20/100) 180 - 180 Expenses 161 - 161 Profit 19 - 19 Year II Revenue (920 x 70/100) 644 180 464 Expenses (820 x 70/100) 574 161 413 Profit 70 19 51 Year III Revenue 920 644 276 Expenses 820 574 246 Profit 100 70 30