Abstract

Suresh Kumar (Suresh) started a wholesale and retail electronics and home appliances business Suresh Electronics and Electricals (SEE) in the year 2018. The revenue streams of SEE were divided into three different categories – one, retail electronics and home appliance shops that placed fixed orders every month; two, other retail electronics and electrical shops that purchased from SEE according to demand; and three revenue from direct sales to customers. The present case study can be helpful in understanding the concept of revenue recognition and the application of Accounting Standard - 9 (Revenue Recognition) and to discuss how to recognize revenues based on the nature of buyers' transactions and the nature of products offered.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• The application of Accounting Standard-9 (Revenue Recognition)
• The recognition of revenue based on the nature of relationship with buyers
• The recognition of revenue based on the nature of products offered for sale

Keywords

Accounting; Accounting principles; Accounting Concepts; Revenue Recognition; Accounting Standard-9; Terms of Revenue Recognition; Profit and loss account; balance sheet