Page 34 - 23. COMPILER QB - IND AS 109_32

Rs.
Year Consideration Present value Present value of
(Installment) factor consideration
Time of sale 3,33,333 - 3,33,333
End of 1st year 3,33,333 0.949 3,16,333
End of 2nd year 3,33,334 0.901 3,00,334

10,00,000 9,50,000
The Company that agrees for deferring the cash inflow from sale of goods will recognise the revenue from
sale of goods and finance income as follows:
Initial recognition of sale of goods Rs. Rs.
Cash Dr. 3,33,333
Trade Receivable Dr. 6,16,667
To Sale 9,50,000
Recognition of interest expense and receipt of second
installment
Cash Dr. 3,33,333
To Interest Income 33,053
To Trade Receivable 3,00,280
Recognition of interest expense and payment of final
installment
Cash Dr. 3,33,334
To Interest Income (Balancing figure) 16,947
To Trade Receivable 3,16,387

Statement of Profit and Loss (extracts)
for the year ended 31st March, 20X2 and 31st March, 20X3
Rs.

As at 31st March, 20X2 As at 31st March, 20X3
Income
Sale of Goods 9,50,000 -
Other Income (Finance 33,053 16,947
income)

Balance Sheet (extracts) as at 31st March, 20X2 and 31st March, 20X3
Rs.
As at 31st March, 20X2 As at 31st March, 20X3
Assets
Current Assets
Financial Assets
Trade Receivables 3,16,387 -

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