Suppose if I receive Rs.60 and spend Rs.10 in the 1st month and Rs. 20 in the 2nd month. In such a case would we acknowledge revenue of 20 in the 1st month and 40 in the 2nd month or equal revenue?


1 Answer(s)


Here revenue is 60 and expense is 30 (20+10). Month 1 revenue recognized would be 60/ (10/30) and in month 2 rest of the revenue would be recognized