Satyam Machines Limited is a manufacturer of high tech fabrication machines. Each machine is sold on cash
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Satyam Machines Limited is a manufacturer of high tech fabrication machines. Each machine is sold on cash down price of ₹3 million. The company also offers the same machine on instalment payment basis. The customers buying on instalment basis can pay the amount in three equated annual instalments of ₹1.3 million each at the end of next three years. The company sold a machine on 1st April 2017.
1. When will the revenue from sales be recorded and by how much?
2. How will you treat the difference between the cash down price ( ₹3 million) and instalment price ( ₹3.9 million)
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