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Solve ASAP thankyou Q-9 A Ltd.provides after sales warranty for two years to its customers. Based on past experience, the company has the following policy
Solve ASAP thankyou
Q-9 A Ltd.provides after sales warranty for two years to its customers. Based on past experience, the company has the following policy for making provision for warranties on the invoice amount, on the remaining balance warranty period. Less than 1 year: 2% provision More than 1 year: 3% provision The company has raised invoices as under: Invoice Date Amount ( ) 11th Feb,2017 60,000 25th Dec, 2017 40,000 04th Oct, 2018 1,35,000 Calculate the provision to be made for warranty under AS -29 as at 31st March 2018 and 31st March 2019 Also compute amount to be debited to P&L account for the year ended 31st March 2019Step by Step Solution
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