How much of amount received by firm be considered as revenue

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Problem 1: Karanjawala & Co is a very well-known legal firm and fights cases in the courts across India. SBI has appointed the firm as a "retainer" for an amount of Rs. 10,00,000 per annum on the 30th Sep. 2019. The firm has agreed to take care of cases and furnish general legal advice upon request for one full year. In addition, the client would be billed for regular legal services such as representation in litigation. There was no way of knowing how often, or when, the client would request advice, and it was quite possible that no such advice would be requested. How much of amount received by the firm should be considered as revenue in the financial year ending 31st March, 2020? Why?

Reference no: EM132954515

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