Revenue recognition

Dolly (Job) (25 Points)

15 September 2017  

Hi ,

I want to know accounting entries for one scenerio-

As on 31.01.2017 Company ABC received a contract for delivery of parcels for one year and received rs.120000 in advance for that.

Conditions of the contract is delivery of upto 100 parcel in the month no extra charges and above this rs.150 per parcel .

ABC delivers 80 parcelsc in Jan'17, no parcels in Feb'17 and 130 parcels in March'17. There books of accounts ends in Dec'17.

What would be entry on month on month basis and at the year end.