A construction company receives advance from customer, against the contract of constructing a bridge. But the construction company does not take this to income or sale, due to which of the following concept:
Revenue recognition of services depends as the service is performed. This is further divided into two ways: (a) Proportionate Completion Method: This method of accounting recognizes revenue in the statement of profit & loss proportionately with the degree of completion of each service. Here the service completion consists of the execution of more than one act. Revenue is recognized with the completion of each such act. (b) Completed Service Contract Method: This method of accounting recognizes revenue in the statement of profit & loss only when the rendering of services under a contract is completed or substantially completed.
A started a business with an investment of Rs.12000. After few months B joined him with an investment of Rs.15000. If at the end of the year, they share...
A, B and C enter into a partnership with a capital in which A’s contribution is Rs. 18,000. If out of a total profit of Rs. 1200, A gets Rs. 500 a...
In a business there are two partners ‘P’ and ‘Q’. ‘P’ started the business with the capital of Rs. 26000 and after 3 months ‘Q’ joined h...
Makhan Lal started a business with the capital investing Rs 18,400. After 6 months Arvind Lal invested Rs 16200. At the end of one year they made a prof...
‘A’ and ‘B’ started a business by investing Rs. 12000 and Rs. 18000, respectively. 6 months later, ‘C’ joined them with an investment equal ...
‘A’ invested Rs. 2400 for ‘x’ months while ‘B’ invested Rs. 400 less amount than ‘A’ for (x + 4) months....
The contributions made by A and B are in the ratio of 4:5. If 10% of total profit is donated and A gets 8200 as his share of profit, what is the total p...
Three Partners Chintu, Pintu and Bittoo invested in the ratio of 2/3, 3/2, 3/4 in a business. After 4 months Chintu increased his capital by 25%. If...
P and Q started a business by investing Rs.8000 and Rs.6400 respectively. After 7 months, Q increased his investment by a certain percentage such that a...
Ram started a business with the capital investing Rs 6000. After 3 months Shyam also joined him, with the capital investing Rs 4000. They make a profit ...