cs corp accounts
to `10,000. There is firm commitment of sale of 1,000 AC by the company in
April, 2019 @ `15,000 per AC. However, the general price of this AC at year end
amounts to ? 9,500 per AC. Calculate the Value of Closing Stock as per AS-2
It's not prudent recognize profit on anticipated sales which is yet to be materialized. The point of firm commitment of sale is given just to confuse. Recognition of revenue associated with sales is specifically dealt in AS-9 Revenue recognition, which requires one to check whether all the conditions mentioned therein are satisfied or not.