Vishal ha s a general store and decide s to give some ration to daily wage earners of his vicinity who have lost their job recently . What amount will Vishal book as revenue for this ration , if the cost of the ration give n away is Rs.50,000 , and its sale value after cash discount is Rs.52,000 and without cash discount is Rs.55,000 ?  

As per the accounting standard Ind-AS 18 for revenue recognition, revenue from sale of goods can be recognized only when all the following conditions are fulfilled: a)    Transfer of significant risks and rewards of ownership of goods b)    Neither continuing managerial involvement nor effective control over the goods c)    Probable future economic benefits will flow d)    Revenue from sale of goods can be measured reliably e)    Costs incurred/to be incurred can be measured reliably In the above question, as there is no probable inflow of economic benefits (since you are giving away ration to help daily wage earners as donation), it is not proper sale and no revenue will be recognised.