Question
Company signs a ₹12 crore contract to deliver a
software + annual maintenance for 3 years. Software is delivered in year 1 (₹8 Cr value), rest allocated to maintenance equally over next 3 years. How much revenue will be recognized in Year 2?Solution
• ₹8 Cr for software recognized in Year 1 • ₹4 Cr remaining = ₹1.33 Cr/year ⇒ Revenue in Year 2 = ₹1.33 Cr
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