UrbanPro
true

Take Class 12 Tuition from the Best Tutors

  • Affordable fees
  • 1-1 or Group class
  • Flexible Timings
  • Verified Tutors

Search in

Introduction To Accounting: Part 18: Revenue Recognition Concept Or Realisation Concept

Nishant Kumar
28/06/2017 0 0
  1. According to the Revenue Recognition Concept, revenue is considered to have been realised when a transaction has been entered into and the obligation to receive the amount has been established.

  2. It is to be noted that recognising revenue and receipt of an amount are two separate aspects.

  3. Examples:

  • An enterprise sells goods in December, 2017 and receives the amount in April, 2018. Revenue of this sales should be recognised in December, 2017, i.e. when the goods are sold. It is so because the legal obligation has been established (upon sales) in December, 2017.

  • Suppose, an enterprise has received an advance in December, 2017 for sales to be made in April, 2018. In this case, revenue shall be recognised in April, 2018, when the sale will take place because the legal obligation to receive the amount would be established in April, 2018.

 

0 Dislike
Follow 0

Please Enter a comment

Submit

Other Lessons for You

GST News, Notifications And Announcements
Central Tax Notifications: Composition Scheme- Notification 3 & 8/2017: Composition scheme threshold has been notified to be 75 lakhs (earlier recommended only). This will be beneficial to small...

Difference between economy and economics.
Hello friends, We all get confused while talking about economy and economics. Some of us even use both the terms as substitutes. But there is a whole world of difference which I am going to describe....

What Are The Two Sources Of Stockholders' Equity?
The two basic sources of stockholders’ equity are: Contributed Capital Retained Earnings i. Contributed Capital: One of the two main sources of stockholders’ equity is contributed capital....
K

Khushboo B.

1 0
0

Current Ratio and Liquid Ratio
What are current and liquid ratios?

How to get better Grades?
Two things - determination and dedication should be a part of your life.Study for you and your goals.Study for your parents they are spending bucks.Do not think of harwards, PhDs, majors. Forget the word...
K

Kushal Sharma

0 0
0
X

Looking for Class 12 Tuition Classes?

The best tutors for Class 12 Tuition Classes are on UrbanPro

  • Select the best Tutor
  • Book & Attend a Free Demo
  • Pay and start Learning

Take Class 12 Tuition with the Best Tutors

The best Tutors for Class 12 Tuition Classes are on UrbanPro

This website uses cookies

We use cookies to improve user experience. Choose what cookies you allow us to use. You can read more about our Cookie Policy in our Privacy Policy

Accept All
Decline All

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 55 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 7.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more