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Stage 8 · What we earn and hold

CAS-24: Revenue in Cost Statements

The school paid ₹9,45,000. How much of it is Selvi’s revenue, and did she actually make a profit?

What you will learn in CAS-24

  • Net sales realisation (§§4, 5.1)
  • By-products, scrap and other income (§§5.5–5.9)
  • Subsidies and presentation (§§5.10, 5.11, 7)

Chapters

  1. What did Selvi really earn? · Find the revenue inside the school’s payment (§§4, 5.1–5.4)
  2. The true profit · Put revenue against cost and see what is left (§§5.5–5.11, 6, 7)
  3. Spot the mistakes in the revenue line · Three mistakes are hiding (§§5.1, 5.6, 5.8)

Key terms

  • Net sales realisation (§§4, 5.1–5.4): Revenue from selling goods or services, after taking off taxes and duties collected, trade discounts, rebates, returns and price adjustments.
  • Product revenue and other income (§§5.5–5.11, 7): By-product sales come off the joint cost; scrap sales reduce cost. Interest, dividends, rent and gains on selling assets are other income and stay out. Subsidies linked to the product are shown as the standard sets out.

Common questions

Is GST part of revenue in a cost statement?

No. Revenue is measured net of taxes and duties collected, discounts, rebates and returns (CAS-24 para 5.1).

CAS-24, Treatment of Revenue in Cost Statements. Checked against the standard in November 2026. Selvi Garments, the school order and every figure in this lesson are fictional. Read the official text on the ICMAI Cost Accounting Standards page ↗ before applying it to real work.