An entity sells a computer with a 90-day ASSURANCE warranty (built into the basic transaction) AND offers a separately-purchasable 3-year extended-coverage plan. Total price ₹36,000 (computer SSP ₹32,000; extended warranty SSP ₹4,000). Inventory cost ₹14,400; estimated assurance warranty claims ₹2,000. The entries at point of sale should:

Service-type warranty (the 3-year extended plan, sold separately) IS a separate PO — its ₹4,000 SSP becomes a contract liability and is recognised as revenue over the service period. The 90-day assurance warranty is NOT a separate PO — its expected cost ₹2,000 is accrued as a provision under Ind AS 37 with a corresponding warranty expense. Computer revenue = ₹32,000. Cost of sales = ₹14,400 (inventory derecognised).