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What is work certified in cost accounting?
Work certified is the work completed and certified by the engineer and work uncertified is that which is completed but not certified by the engineer. Work certified and work uncertified are part of work in progress and to be recorded in contract account.
What is work uncertified in cost accounting?
Work Uncertified (a) The cost of work uncertified represents the cost of work which has already been. Completed, but for that the contractor has not received completion certificate from the contracted's surveyor or architect.
What is meant by work uncertified?
Work uncertified represents work done during the contract period but not yet certified by the Architect/Surveyor. Work certified represents work done during the contract period and also certified by the Architect/Surveyor.
What do you mean by work certified and work uncertified?
Work certified is the work completed and certified by the engineer and work uncertified is that which is completed but not certified by the engineer. Work certified and work uncertified are part of work in progress and to be recorded in contract account.
What is cost of work certified?
Cost of work certified = Cost of work to date (Cost of work uncertified + Material in hand. + Plant at site) The amount retained is called retention money. The full value of the work certified should. Be credited to the Contract Account and debited to the account of the contract.
What is architect certificate in contract costing?
An architect or surveyor inspects the work periodically and issues certificates to the contractor detailing satisfactorily completed work. These are valued at selling price and the contractor sends the certificate to the client with an invoice to obtain interim payments.
How do you calculate work certified in contract costing?
Work Uncertified is calculated on cost basis, As given in the question that 2/3 of contract was completed and 1/2 half was certified by the architect, means 2/3-1/2 = 1/6 remains uncertified.
How do you calculate the value of work certified in contract costing?
Work Uncertified is calculated on cost basis, As given in the question that 2/3 of contract was completed and 1/2 half was certified by the architect, means 2/3-1/2 = 1/6 remains uncertified.
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