Work-in-progress A/c
The Work-in-progress A/c is debited with the sums
(i)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Work certified (valued at contract price), and
(ii)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Work done but not yet certified (valued at cost).
This account is credited with the balance of the notional profit not taken to the Profit and Loss Account.
This account shows debit balance which is taken to the Balance Sheet on the Asset side. The Contractee’s A/c which shows credit balance on account of cash received in advance, is not shown on the Liability side of the Balance Sheet but is shown as a deduction from the Work-in-Progress A/c on the Asset side of the Balance Sheet.
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