Question -
Answer -
Revenue is recognised if right to receive income is established. It can also be said to have established when a sale takes place in cash or in credit.
Following exceptions can be seen:
1. Goods that are sold on hire purchase, the amount thus collected in instalments will be accounted as revenue realized.
2. Projects related to construction of building etc. are projects of long duration, revenue is realized periodically that is in proportion to the part of work which is completed.