Bazar Ltd. enters into a contract for the sale of Product H for 2,000 per piece. As part of the contract, it gives the customer a 40% discount…

CA Final · Financial Reporting · PYQS · May 2025
Bazar Ltd. enters into a contract for the sale of Product H for 2,000 per piece. As part of the contract, it gives the customer a 40% discount voucher for any future purchase upto 1,000 in the next 30 days. Bazar Ltd. intends to offer a 10% discount on all sales during the next 30 days as part of a seasonal promotion. The 10% discount cannot be used in addition to the 40% discount voucher. Bazar Ltd. believes there is 90% likelihood that a customer will redeem the voucher and, on an average, a customer will purchase - 1,000 of additional products. On the basis of above information, determine how many performance obligations does Bazar Ltd. have and the allocated transaction price?
(A) 2 performance obligations, allocated price of product H is 1,762 and discount voucher is 238.
(B) 1 performance obligation, allocated price of product H is 2,000.
(C) 2 performance obligations, allocated price of product H is 1,850 and discount voucher is 150.
(D) 2 performance obligations, allocated price of product H is 1,900 and discount voucher is 100.

Suggested Answer and Working Notes:

Correct Answer: Option (A)

2 performance obligations, allocated price of product H is 1,762 and discount voucher is 238.

Topics: Ind AS 115

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic