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An entity sells Products A, B and C for ₹10,000 total. SSPs: A = ₹5,000 (observable), B = ₹2,500 (estimated), C = ₹7,500 (estimated) — total SSP ₹15,000. No specific evidence ties the ₹5,000 discount to a particular PO. The allocation to Product A is approximately:
A₹2,500 — equal split of the discount across A, B and C
B₹3,300 — ₹5,000 ÷ ₹15,000 × ₹10,000
C₹6,667 — the residual after allocating B and C at SSP
D₹5,000 — the observable SSP, with the discount absorbed only by B and C
Answer & Solution
Correct answer: B. ₹3,300 — ₹5,000 ÷ ₹15,000 × ₹10,000
Para 76 — when there's no observable evidence that the discount relates to specific POs, the discount is allocated PROPORTIONATELY across all POs using their relative SSPs. A gets ₹5,000/₹15,000 × ₹10,000 = ₹3,333 (rounded to ₹3,300).
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