AS 9 Revenue Recognition | For New CA Inter Entrant | When to Record Income? | Basic | Concept | TDS

Ever wondered exactly how, when, and how much you should record as income in your P&L account? Enter Accounting Standard 9: Revenue Recognition! This standard is your ultimate guide to figuring out the exact timing, amount, and the right name (like Sales, Rent, or Interest) to use when recognizing and recording your business's revenue But what exactly is revenue? The simplest way to define it is the "gross inflow of resources." Wait, why "gross"? Sometimes you don't actually receive the full amount you're owed because of government regulations . For example, if someone owes you ₹10,000, but the government requires them to deduct a 10% TDS (Tax Deducted at Source), you will only receive ₹9,000 in hand The remaining ₹1,000 is still your money—it was just deposited to the government on your behalf, and you'll get a certificate to prove it That's why we always look at the gross amount (the full ₹10,000) when calculating that inflow What accounting concept should we break down next? Let me know in the comments below! #AccountingStandard9 #RevenueRecognition #GrossInflow #TDS #TaxDeductedAtSource #FinanceBasics #AccountingEducation