KK Ltd. runs a departmental store which grants 10 focuses for each acquisition of ' 500 which
Question:
KK Ltd. runs a departmental store which grants 10 focuses for each acquisition of ' 500 which can be limited by the clients for additional shopping with a similar dealer. Unutilised focuses will pass on expiry of a long time from the date of credit. Estimation of each point is ' 0.50. During the bookkeeping time frame 2019-2020, the element granted 1,00,00,000 focuses to different clients of which 18,00,000 focuses remained undiscounted. The administration expects just 80% will be limited in fate of which typically 60-70% are recovered during the following year.
The Company has moved toward your firm with the accompanying questions and has requested that you propose the bookkeeping treatment (Journal Entries) under the appropriate Ind AS for these honor focuses:
(a)How should the acknowledgment be accomplished for the offer of merchandise worth ' 10,00,000 on a specific day?
(b)How should the recovery exchange be recorded in the year 2019-2020? The Company has mentioned you to introduce the offer of products and reclamation as
autonomous exchange. Absolute deals of the element is' 5,000 lakhs.
(c)How a large part of the conceded income ought to be perceived at the year-end (2019-2020) due to the assessment that lone 80% of the remarkable focuses will be reclaimed?
(d)In the following year 2020-2021, 60% of the remarkable focuses were limited. Equilibrium 40% of the extraordinary purposes of 2019-2020 actually stayed exceptional. What amount of the conceded income should the dealer perceive in the year 2020-2021 and what will be the measure of equilibrium conceded income?
(e)How much income will the trader perceived in the year 2021-2022, if 3,00,000 focuses are recovered in the year 2021-2022?