Ind AS

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Ind AS 115
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1
 Ind Accounting Standards - (Ind AS)

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IND AS 115

Revenue from Contracts with Customers

1.
Deals with recognition of Revenue from contracts with customers for Transfer of Goods and Services.
But it does not deal with:
Lease Contracts
Insurance Contracts
Financial Instruments
Non - monetary Exchanges

2. Recognition

Revenue Model of Ind AS 115 Revenue from Contracts with Customers :

Step 1: Identify the contracts with the customer.

Step 2: Identify the performance obligations in the contract.

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Ind AS

Step 3: Determine the transaction price.

Step 4: Allocate the transaction price to the performance obligations.

Step 5: Recognize revenue when each performance obligation is satisfied

Case Study

Entity - Enters into a contract with Customer

For construction of Buildings and Approach roads at a contract price of Rs. 500 crores. It is estimated
that 75% of the total cost would pertain to construction of Buildings.
Till the end of the reporting period 60% of the total work on buildings and 40% of the Roads has been
completed

Response:
Revenue Recognition
1st Step: Identification of Contract: Given in the case it self
2. Step: Identification of Performance Obligations: a. Construction of buildings b. Construction of Roads
3. Step: Transaction Price : 500 Crores
4. Step: Allocation of Transaction Price :

TP 500 Crores

PO 1 , 75% PO 2 , 25%
375 Crores 125 Crores

5. Revenue recognition :
Building 60% of 375 = 225 , Roads 40% of 125 = 50

Step 1: Identify the contracts with the customer:

A contract is defined as an agreement between two or more parties that creates enforceable rights and
obligations. It can be written, oral or implied but must meet specific criteria.
Following Conditions must be satisfied for existence of contract:
 Collection of consideration of probable.
 Rights to goods/services and payment terms can be identified.
 It is approved and the parties are committed to their obligations.
 It has commercial substance.
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 Ind Accounting Standards - (Ind AS)

Step 2: Identify Performance Obligations:

 Considered as Single PO : if different performances can be integrated

 Considered as case of multiple POs : if goods or services have alternative uses or ca n be
procured from other parties.

Case Study 2.1

Determine whether there arise single or multiple performance obligations for the following contracts with
customers?

a.
A Ltd. Enter into a contract with a customer for installing a central air-conditioner system including site
preparation, assembling of plants and test running the system.

Response :
Site preparation, assembling of plants and test running are integrated in single performance obligation.

b.

A Ltd. enter into a contract with a customer for installing a central air-conditioning system and a power
generating plant for support of the air-conditioning system. However, the power generating unit can also
serve other electrical uses and could be acquired from other suppliers separately.

Response :

Case of Multiple POs. As power generating unit can serve other uses and be procured from different
supplier.

c.

A Ltd. enter into a contract with a customer for installing a power generating plant which includes designing and
construction of the plant.

Designing could have been made by any other independent designer. Based on the approved design
construction of the plant has to be done.

Response :

Designing and construction are distinct performance obligations.

Case Study - 2.3

Entity - Enters into a contract with Customer

To transfer a software license, perform an installation service and provide unspecified software updates and
technical support (online and telephone) for a two-year period. Determine how many performance obligations
does the entity have? 4
Ind AS

Suggested Response:
On the basis of this assessment, the it can be inferred that there are four performance obligations in the
contract for the following goods or services:
 The software license
 An installation service
 Software updates Technical support

Step 3: Determine the transaction price:

Transaction price is defined as the amount of consideration to which an entity expects to be entitled in
exchange for transferring promised goods or services to a customer.

Rights of return:
Rights of return is a variable consideration. Revenue recognition is limited to amounts for which it is
“probable” a significant reversal will not occur i.e. it is probable the goods will not be returned.

Case Study 3.1

A sells 1,000 products to Distributor for INR 50 each. Distributor has the right to return the products for a
full refund for any reason within 180 days of purchase. The cost of each product is INR 10. A estimates,
based on the expected value method, that 6% of sales of the products will be returned and it is highly
probable that returns will not be higher than 6%.

Answer:
Following entries will be passed:
On the date of Sales:
1. Debtors A/c Dr. 50,000
To Revenue 47,000
To Refund Liability 3,000
2. Refund Liability Dr 600
To Debtors 600
(1,000 x 6% x Rs. 10 per unit)

Significant financing component:

In the case of significant financing component included in the transaction price, then this component will
be accounted over the period of the contract as interest incom e.
Sometimes seller charges extra amount ( in comparison to NSP) on account of credit period facility.

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 Ind Accounting Standards - (Ind AS)

Extra amount is Interest.

If credit period is Normal then entire sale price including interest shall be booked as Revenue
However, if credit period is more than normal then only Sale price shall be booked as revenue and interest
shall be recognised over the credit period.
Any abnormal Interest charged shall always be booked as revenue.

Case Study - 3.2

Normal credit period is 1 year .
Credit Period to the customer is 2 Years
Price charges from the customer is 110.
Suggested Response
Revenue will be accounted as 100 Rs and Interest Income will be accounted for Rs. 10 over the period
of credit i.e. 2 Years.

Case Study: 3.3

On 01.04.2026 X Ltd. Sold goods at a price of Rs. 15,00,000 payable on 31.03.2028. The implicit interest rate
is 10 % p.a. What would be the revenue to be recognized for the year 2026-27 Presuming normal credit
period is 12 months?

Solution:
Rate of Interest is 10 %
Period 2 years
Thus if 100 is sale price of goods then SP including Interest must be 100 + 100 x 10% x 2 years = 20

The financing component for 2 years amounts to Rs. 15,00,000 Less Rs. 15,00,000 × 100/120

= 15,00,000 - 12,50,000 = 2,50,000

Rs. 2,50,000 is financing component is considered significant as the period is more than normal credit
period. Hence, the entire sale value is recognised as revenue from contract with customer.

Step 4: Allocate the transaction price:

Allocation of the transaction price will be on the each performance obligation.

Allocation of a discount:

An entity is required to allocate a discount entirely to one or more (but not all) performance obligations

Case Study - 4.1

Entity - Enters into a contract with Customer

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Ind AS

To sell of Product A for Rs. 1,000. As part of the contract, the entity gives the customer a 40%
discount voucher for any future purchases up to Rs. 1,000 in the next 30 days. The entity intends to
offer a 10% discount on all sales during the next 30 days as part of a seasonal promotion.The10%
discount cannot be used in addition to the 40% discount voucher. The entity believes there is 80%
likelihood that a customer will redeem the voucher and on an average, a customer will purchase Rs. 500
of additional products.
Determine how many performance obligations does the entity have and their stand-alone selling price
and allocated transaction price?

Suggested Response:

Performance obligations Stand-alone selling price

Product A Rs. 1000
Discount voucher RS. 500 x 30% x 80 % Rs. 120
Total Rs. 1120

Allocation of TP Rs. 1,000 to Performance obligations Allocated transaction price

Product A : (Rs. 1,000 x 1,000 ) Rs. 890

1,120
Discount voucher : (Rs. 120 x 1,000 ) Rs. 110

1,120
Rs. 1,000

The entity shall allocate Rs. 890 to Product A and recognise revenue for Product A when control gets
transferred. The entity shall allocate Rs. 110 to the discount voucher and recognise revenue for the voucher
when the customer redeems it for goods or services or when it expires.

Case Study 4.2:

On 31.03.2024 A Ltd. enter into a contract with a customer for sale of goods of 6,000 gr anting 50%
discount voucher to be availed in future purchase up to 4,500 within 30 days. Ordinarily 10% discount
is allowed on sales. Ordinary discount will not be available to avail the 50% discount voucher. There is
60% probability that the customer will redeem the discount voucher and the estimated amount of
purchase is 3,000. In April 2025, the discount vouchers are redeemed for purchase of additional goods
of 4,200. Find revenue recognition in 2024-25 and in 2025-26.

Solution : Revenue shall be :

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 Ind Accounting Standards - (Ind AS)

There are two performance obligations one for sale of goods and other for sale of discount vouchers.
Their standalone prices:
Goods 6,000 less 10% ordinary discount Rs. 5,400
Discount Vouchers Rs. 720
Total Rs. 6,120
[Value of vouchers = Discount in excess of ordinary rate of 10%× estimated Purchase amount ×
probability of purchase = (50 – 10)% × 3,000 × 60% = 720]

Transaction price is Rs. 5,400 which is sale price less current discount of 10%. It is to be allocated
between performance obligations of goods and discount vouchers proportionately.

Allocation to goods Rs.5,400 × (Rs.5,400/ Rs. 6,120) = Rs.4,765

Allocation to Discount Voucher Rs.5,400 × (720/6,120) = Rs. 635

Thus in 23-24 Revenue is recognised for Rs. 4,765 only, which is transaction price less future discount.
Discount 635.

Voucher is carried as a liability at Rs. 635.

In 2024-25 this liability will be cancelled and revenue will be recognised forRs.635, when the discount
voucher is redeemed or expired.

The Transaction Price for additional sale is Rs.4,200 less 50% discount voucher = Rs. 2,100; Total
Revenue recognised is Rs.2,100 + Rs. 635 = Rs. 2,735.

Step 5: Recognize revenue as performance obligations are satisfied:

Revenue is recognized when entity satisfies a performance obligation by transferring a promised good or
service to a customer. A good or service is considered to be transferred when the customer obtains
control. Performance obligations are either satisfied over time or at a point in time.

Case Study - 5.1

On 01.01.2024 A Ltd. entered into a contract with B to sell 20 TV sets at a price of Rs. 50,000 per set and the
goods were delivered in February, 2024. Determine revenue to be recognised by A in 2023-24 in the following
circumstances:

(i) 2 sets found damaged at the time of receiving and returned by B.

(ii) 4 sets found not properly functioning in March, 2024 and they were replaced by A as per terms of
warranty.
(iii) It is not a sale but goods sent on consignment and B will sell the TV sets at Rs. 50,000 per set. 12 sets
were sold by B.
(iv) It is a contract of sale or return. The TV sets can be returned by B unconditionally within 3 months.
Solution:

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Ind AS

(i) Revenue is recognised for 18 sets at Rs. 9,00,000. 2 sets returned to inventory of defective items.
(ii) Revenue is recognised for 20 sets at Rs. 10,00,000 at delivery .
(iii) Revenue is recognised for 12 sets at Rs. 6,00,000. The other 8 sets are recognised as asset (inventory)
at cost.
(iv) No revenue is recognised on delivery as right of the customer to unconditionally return the goods has not
expired. The amount received or receivable on delivery of the sets is recognised as a liability and asset
(inventory) is recognised for all 20 sets at cost. The performance obligation will be satisfied at the point
of time when that right to return will expire and then only revenue will be recognised cancelling the
liability.

Case Study - 5.2

On 01.12.2024 A Ltd. enter into a contract with customer to install a system at Rs. 20 lakhs and implement a
software by June 2025 at Rs. 80 lakhs plus Rs. 15 lakhs bonus for completing software implementation by
April 2025. Initially A Ltd. estimated the contract price at 1 crore for two performance obligations – system
installation and software implementation by June 2025.

In March 2025 the company found system installation complete and software implementation 80% complete
with confidence to earn bonus of Rs. 15 lakhs by completing implementation by April 2025. Compute revenue
to be recognised in 2024-25.

Solution:
Revenue Recognition in 2024-2025:
System installation completed Rs. 20 Lakhs; and
Software implementation 80% completed = (Rs. 80 lakhs + Rs. 15 lakhs) × 80% = Rs. 76 lakhs.
Had the software implementation be satisfied at a point in time when completed and control is transferred in
April 25 no revenue would be recognised proportionately in 2024-2025 for software implementation.

6. Bill and Hold arrangements

Case Study - 6.1

Entity Enters into contract with Customer

Contract : Sale of a machine and spare parts. Start date 1.4.21. The promises to transfer the machine
and spare parts are distinct and result in two performance obligations that each will be satisfied at a
point in time. On 31st March, 2023, the customer pays for the machine and spare parts, but only takes
physical possession of the machine.
The customer requests that the spare parts be stored at the entity's warehouse because of its close
proximity to the customer's factory.
The Entity stores the spare parts in a separate section of its warehouse and the parts are ready for
immediate shipment at the customer's request.
The entity expects to hold the spare parts for 3 years and the entity does not have the ability to use the
spare parts or direct them to another customer. How will the Company recognise revenue for sale of
9 machine and spare parts? Is there any other performance obligation attached to this sale of goods?
 Ind Accounting Standards - (Ind AS)

Suggested Response:
In the present case, Entity has made sale of two goods – machine and spare parts, whose control is
transferred at a point in time. Additionally, company agrees to hold the spare parts for the customer for a
period of 2-4 years, which is a separate performance obligation. Therefore, total transaction price shall be
divided amongst 3 performance obligations –
(i) Sale of machinery
(ii) Sale of spare parts
(iii) Custodial services for storing spare parts.

Entity shall Recognise revenue for each of the three performance obligations as follows:
i. Sale of machinery: Machine has been sold to the customer and physical possession as well as legal title

passed to the customer on 31st March, 2023. Accordingly, revenue for sale of machinery shall be

recognised on 31st March,2023.

ii. Sale of spare parts: The customer has made payment for the spare parts and legal title has been passed
to specifically identified goods, but such spares continue to be physically held by the entity. In this regard,
the company shall recognise revenue on bill-n- hold basis .
Custodial services: Revenue for such service shall be recognized on a straight line basis over a period of
time.

7. Contract Costs

Cost of Obtaining Contracts

Ind AS 115 states that, “An entity shall recognise as an asset the incremental costs of obtaining a contract
with a customer if the entity expects to recover those costs”.
“The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a
customer that it would not have incurred if the contract had not been obtained (for example, a sales
commission)”.
Case Study - 8.1

Company Ten-X Enters into contract Customer

with

Provides Consultancy Services to its customers. It has won a contract through a tender process and
incurs following costs to obtain the contract:
External legal fees for due diligence Rs. 15,00,000
Travel cost to deliver proposal Rs. 25,00,000
Commissions to sales employees Rs. 10,00,000
Total cost incurred Rs. 50,00,000 10
Ind AS

Suggested Response:
The commissions payable to sales employees are an incremental cost to obtain the contract, because they
are payable only upon successfully obtaining the contract.. Company Ten X , shall therefore recognise an
asset for the sales commissions of Rs.10,00,000, subject to recoverability.
Company would have incurred legal fees and travel costs regardless of whether the contract was obtained.
Therefore those costs are recognised as expenses when incurred.

Cost of fulfilling contracts

Ind AS 115 states that the costs incurred in fulfilling a contract with a customer by entity should be
recognised as an asset Provided:
(a) the costs relate directly to a contract or to an anticipated contract that the entity can specifically identify
(for example, costs relating to services to be provided under renewal of an existing contract or costs of
designing an asset to be transferred under a specific contract that has not yet been approved);
(b) the costs generate or enhance resources of the entity that will be used in satisfying (or in continuing to
satisfy) performance obligations in the future; and 115
(c) the costs are expected to be recovered”.
Case Study - 8.2

FX Limited Enters into contract with Customer

Contract : to provide Quality Assurance Services for 4 Years. Before the Quality Assurance can begin,
FX Ltd. is required to procure a third party tool which would enable it to deliver services seamlessly. For
the testing tool, FX Ltd. charges the customer Rs.6,00,000 which is included in the overall transaction
price that is allocated to the performance obligation to provide Quality Assurance services. FX Ltd. pays
the vendor a cost of Rs.5,00,000 to develop the tool.
How will FX Ltd. account for the cost of the tool?

Suggested Response:
In the given case, the third party tool satisfies all of the criteria defined in the standard and hence the
fulfilment costs of Rs.5,00,000 can be capitalised and amortised on a systematic basis i.e., in this case over
the quality assurance services.
8 - Right to Repurchase

Case Study- 8.1

Entity Enters into contract with Customer

Contract : for the sale of a tangible asset on 1 st January, 2023 for Rs.1 million. The
contract includes a call option that gives the entity the right to repurchase the asset for Rs. 1.1
million on or before 31 st December,2023. How would the entity account for this transaction?
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 Ind Accounting Standards - (Ind AS)

Suggested Response:
In the above case, where the entity has a right to call back the goods upto a certain date – The customer
cannot be said to have acquired control, owing to the repurchase right with the seller entity

Since the original selling price (Rs.1 million) is lower than the repurchase price (Rs. 1.1 million), this is
construed to be a financing arrangement and accounted as follows:
Amount received shall be recognized as „liability‟
Difference between sale price and repurchase price to be recognised as „finance cost‟ and recognised
over the repurchase term.

9. Contract Modifications

Case Study - 9. 1

On 1.4.24, Z Ltd. Agrees to sell 200 units of product A to a customer for Rs.3,20,000 ( Rs.1,600 per unit). 100
Units of product A are transferred over to the customers by 31.03.25.

On 1.4.25, the contract is modified to deliver additional 50 units at the then market price of Rs.1,400 per unit
to be delivered in following 3 months. Show how the transaction will be accounted in books of Z ltd.

Solution:

During F.Y. 2024-25 revenue will be recognized for the performance obligation satisfied with regard to the
identified contract. Although the contract is modified, the modification is accounted as a distinct separate
contract with its stand-alone price.

With respect to the original contract the transaction price to be allocated to the satisfied performance
obligation is (100× 1,600 ) = Rs. 1,60,000 to be recognized as revenue to be credited to P & L.

In F.Y. 2025-26, on satisfaction of performance obligation of the original contract the balance Rs. 1,60,000 of
the transaction price will be recognized as revenue.

Further, for the modifications of the contract, treated as another distinct and new contract the transaction price
is 50 × Rs. 1,400 = Rs. 70,000 to be recognized as revenue on satisfaction of performance obligation, i.e. on
transfer of control of the units in 3 months.

Case Study - 9.2

On 1.4.24, Z Ltd. Agrees to sell 200 units of product A @ Rs. 1,600 per unit to a customer. 100 Units of
product A are transferred over to the customers by 31.03.25. On 1.4.25, after transfer of control of 100 units of

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Ind AS

A, the contract is modified to deliver 150 units of A instead of remaining 100 units by 30.6.2025 at Rs. 1,500
per unit.

Solution:
Here additional performances are distinct but additional consideration is not stand-alone selling price; hence,
it is modification will not be treated as new or distinct contract.

For FY 24-25 revenue recognition is Rs. 1,60,000 for 100 units at Rs. 1,600 p.u.
Balance revenue of the original contract will not be recognised as original contract shall be considered as
terminated.
For 2025-2026: Contract Revenue will be = 150 × Rs.1,500 = Rs. 2,25,000
Total Rs. 2,25,000

Case Study 9.3

Original contract price of a project was Rs. 50,000 based on estimated 200 production hours at a rate of Rs.
250 per hour. After revenue recognition for 100 hours the contract is modified to increase the required hours
by 50 at hourly rate of Rs. 200
Response:
The remaining performance is not distinct in the modified estimate of input hours, hence it is modification.

(i) at hourly rate of Rs. 200 for 50 hours Hours Rate (Rs.) (Rs.)
Original contract 200 250 50,000
Modification 50 200 10,000
Total 250 240 60,000
Revenue recognised (A) 100 250 25,000
Modified recognition (B) 100 240 24,000
Adjustment for past revenue recognition (A – B) (1,000)
Revenue recognition in future 150 240 36,000

Case Study 11.4

Original contract price of a project was Rs. 50,000 based on estimated 200 production hours at a rate of Rs.
250 per hour. After revenue recognition for 100 hours the contract is modified to increase the required hours
by 50 at hourly rate of Rs. 200 for the remaining 150 hours;

(ii) at hourly rate of Rs. 200 for 150 hours Hours Rate (Rs.) (Rs.)

Revenue recognised (A) 100 250 25,000

Modification for remaining hours 150 200 30,000

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 Ind Accounting Standards - (Ind AS)

Total 250 220 55,000

Modified recognition (B) 100 220 22,000

Adjustment for past revenue recognition (A – B) (3,000)

Revenue recognition in future 150 220 33,000

Questions from Recent Examinations

Dec. 23 NS - 3. - a -
On 31.03.2022 A Ltd. enter into a contract with a customer for sale of goods of 6,000 granting 50%
discount voucher to be availed in future purchase up to 4,500 within 30 days. Ordinarily 10% discount
is allowed on sales. Ordinary discount will not be available to avail the 50% discount voucher. There is
60% probability that the customer will redeem the discount voucher and the estimated amount of
purchase is 3,000. In April 2022, the discount vouchers are redeemed for purchase of additional goods
of 4,200. Find revenue recognition in 2021-22 and in 2022-23.
7 Marks
Solution : Revenue shall be :

There are two performance obligations one for sale of goods and other for sale of discount vouchers.
Their standalone prices:
Goods 6,000 less 10% ordinary discount Rs. 5,400
Discount Vouchers Rs. 720
Total Rs. 6,120

[Value of vouchers = Discount in excess of ordinary rate of 10%× est imated Purchase amount ×
probability of purchase = (50 – 10)% × 3,000 × 60% = 720]

Transaction price is Rs. 5,400 which is sale price less current discount of 10%. It is to be allocated
between performance obligations of goods and discount vouchers propo rtionately.

Allocation to goods Rs.5,400 × (Rs.5,400/ Rs.= Rs.4,765

6,120)

Allocation to Discount Voucher Rs.5,400 × (720/6,120) = Rs. 635

Thus in 21-22 Revenue is recognised for Rs. 4,765 only, which is transaction price less future discount.
Discount .

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Ind AS

MTP Dec. 23 Term

On 01.01.2022 A Ltd. entered into a contract with B to sell 20 TV sets at a price of Rs.50,000 per set and the
goods were delivered in February, 2022.

Determine revenue to be recognised by A in 2021-22 in the following circumstances:

(i) 2 sets found damaged at the time of receiving and returned by B.

(ii) 4 sets found not properly functioning in March, 2022 and they were replaced by A as per terms of
warranty.

(iii) It is not a sale but goods sent on consignment and B will sell the TV sets at Rs.50,000 per set. 12 sets
were sold by B.

(iv) It is a contract of sale or return. The TV sets can be returned by B unconditionally within 3 months. The
entity expects (a) full return; (b) 50% return

Suggested Answer:

(i) Revenue is recognised for 18 sets at Rs. 9,00,000. 2 sets returned to inventory of defective items.

(ii) Revenue is recognised for 20 sets at Rs.10,00,000 at delivery (assumed warranty is required by law and
subsequent replacement is not considered as performance obligation to be satisfied over time and to attract
any allocation of contract price).

(iii) Revenue is recognised for 12 sets at Rs.6,00,000. The other 8 sets are recognised as asset (inventory)
at cost.

(iv) (a) No revenue is recognised on delivery as right of the customer to unconditionally return the goods has
not expired and full return is expected. The amount received or receivable on delivery of the sets is
recognised as a liability and asset (inventory) is recognised for all 20 sets at cost. The performance obligation
will be satisfied at the point of time when that right to return will expire and then only revenue will be
recognised cancelling the liability.

(b) Revenue will be recognised at Rs.5,00,000 (50% of delivery) and for balance Rs.5,00,000, liability will be
recognised. Further, asset (inventory) should be recognised for 10 sets at cost.

MTP Term June 24

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 Ind Accounting Standards - (Ind AS)

On 31.03.2023 A Ltd. enter into a contract with a customer for sale of goods of Rs.4,000 granting 50%
discount voucher to be availed in future purchase up to Rs. 3,000 within 30 days. Ordinarily 10% discount is
allowed on sales. Ordinary discount will not be available to avail the 50% discount voucher.
There is 60% probability that the customer will redeem the discount voucher and the estimated amount of
purchase is Rs.2,000. In April 2023 the discount vouchers are redeemed for purchase of additional goods of
Rs.2,800. Find revenue recognition in2022-23 and in 2023-24.

Suggested Answer:
There are two performance obligations one for sale of goods and other for sale of discount vouchers. Their
standalone prices:
Goods Rs.4,000 less 10% ordinary discount Rs.3,600
Discount Vouchers Rs.480
Total Rs.4,080
[Value of vouchers = Discount in excess of ordinary rate of 10%× estimated Purchase amount × probability of
purchase = (50 – 10) % ×Rs.2,000 × 60% = Rs.480]
Transaction price is Rs.3,600 which is sale price less current discount of 10%. It is to be allocated between
performance obligations of goods and discount vouchers proportionately.
Allocation to goods Rs.3,600 × (Rs.3,600/ Rs.4,080) = Rs.3,176
Allocation to Discount Voucher Rs.3,600 × (Rs.480/Rs.4,080) = Rs.424
Thus in 2022-23 Revenue is recognised for Rs.3,176 only, which is transaction price less future discount.
Discount Voucher is carried as a liability at Rs.424.
In 2023-24 this liability will be cancelled and revenue will be recognised for Rs.424, when the discount
voucher is redeemed or expired.
The Transaction Price for additional sale is Rs.2,800 less 50% discount voucher = Rs.1,400; Total Revenue
recognised is Rs.1,400 + Rs.424 =Rs.1,824.
Thus ,t Rs.424 is deducted from revenue of 2022-23 and added to revenue of 2023-24.

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