Write the journal entries for the completed contract method

In this method, all revenue and expenses will not be recognized, until the completion of the contract. If there is any unpredictability in collecting funds from customers, then this method is used. This method is easy to determine and simple.

Journal entries

The journal entries for completed contract method are as follows −

Example

Consider the following table for understanding how to write journal entries −

Solution

The journal entries by using the completed contract method for the above-mentioned data are as follows −

Nagasravan Tamma

Published on 06-Jul-2021 12:19:03

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