Muronga Ltd supplied the following details regarding a contract that was still in progress at the end of the accounting period ended 29 February 2019:

Contract price

N$100 000

Cost to date

N$60 000

Estimated costs to completion

N$12 000

Sales value of work certified

N$75 000

Cost of certified work

N$50 000

Retention amount

N$7 500

Required:

Mark

Calculate the amount of profit on this contract that may be transferred to the profit and loss account for the past accounting period, using each of the following methods:

The work certified method 

The percentage of completion method