Pls help me on following situation
If any company enter into contract for purchase of 5000 shares at Rs 500000 with condition that he will pay 50% at the time of entring into contract and remaining at the time of fulfilling condition.
Condition is that if a company maintains every year Rs. 10,00,000 or more profit for continuous 3 years it will pay the remaining amount otherwise if condition is not fulfilled then it will not pay the remaining amount and become owner of the shares.
My problem is that on what amount investment should be showed whether condition is satisfied or not?
CAclubindia
