Suman Ltd. is in the business of manufacturing electronics equipment and selling these at its various outlets. It provides installation services for…
CA Intermediate · Advanced Accounting · RTP · September 2024
Suman Ltd. is in the business of manufacturing electronics equipment and selling these at its various outlets. It provides installation services for the equipment sold and also provide free 1 year warranty on all the sold products. Beach Resorts are leading resorts in the city. It purchased 5 air conditioners (AC) from Suman Ltd. for its resort. Suman Ltd. sold 5 AC to Beach resort for 45,000 each which includes installation fees of 1,000 for each AC. The Company also offers 1 year warranty for any repair etc. The Company also offered 500 per AC as trade discount. Beach resort placed order on March 15, 2024 and made payment on March 20, 2024. The ACs were delivered on March 27, 2024 and the installation was completed on April 5, 2024.
Suggested Answer and Working Notes:
Correct Answer: Option (B)
₹ 2,17,500
Topics: AS 2, AS 29, AS 13
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