Comments

  1. avatar says

    Thank you Mike you’ve been a great help you are a great lecturer. Your goodwill can never be impaired all the rest are valued under proportionate basis and gratitude will always only ever be to you.

  2. avatar says

    City Motors Ltd. Sold a Car to its Customer for $ 1,663,750. on 1st of July.,10 term provided that the Whole Amount Should be Paid After 3 Years. Effective Rate of interest is 10% . what amount of revenue should be recognised at end of year 1,2 n 3 ?????? answer plzzzzzzzzzz

    • Profile photo of MikeLittle says

      “They sold a car for $1,663,750″ ! ! ! ! !!!!!!! ???????

      If they are selling cars for > $1.5 million they can afford a qualified accountant to work out appropriate revenue

      The present value of the amount receivable in 3 years’ time is $1,663,750 / (1/1.1)(1/1.1)(1/1.1)

      The revenue to recognise in year 1 is the present value * 1.1

      In year 2 it’s (that amount * 10%)

      In year 3 it’s $151,250

      Double entries in year 1 Dr receivable Cr revenue $1,663,750 / (1/1.1)(1/1.1)(1/1.1)

      Dr receivable Cr finance income (present value * 10%)

      Year 2 Dr receivable Cr finance income 10% * balance on receivable account

      Year 3 Dr receivable Cr finance income $151,250

      and Dr Cash Cr receivable $1,663,750

      And tell the car seller not to be so tight with his millions of dollars and pay an accountant to work out the amounts!

      I would have done it for you but I’m sitting in a fog-bound airport waiting to catch a plane to get me home

  3. Profile photo of jemma242 says

    I can’t believe i have just read this on here… they are free lectures, the teachers on here take up their time to teach and share their knowledge for free… perhaps you should respect the site or go or pay hundreds to be taught it.

    I appreciate all what they do and perhaps instead of moaning about it you should go away and start revising !

    yes constructive criticism should be given but not in such a rude way!

    thank you Mike all your lectures are helping me with my course!!

      • Profile photo of Miss A.. says

        @arsal434, hmmm….you should respect him.

        Anyways Sir Mike, the notes have significant importance on their own.However, any illustration would do more wonders.I appreciate our efforts for students of f7 & keep up the good work as many students are in need of it.

      • Profile photo of MikeLittle says

        @Miss A.., Whatever is in the notes / lectures for IAS 18 is pretty much all your going to need for F7. These lectures and notes don’t just happen! There is thought that goes into them. Look up the last time that Steve Scott asked a 25 mark question on Government Grants or Revenue and you’ll be looking for a long, long, long time.

        Give me break, will you, and credit me with a bit of intelligence

    • Profile photo of hamzaharoon says

      @arsal434, WOW, you are sort of Immature Idiot are you, Sir Mike and other teachers are helping us day and night for our bright future by issuing course notes, uploading video lectures and most importantly they try to instantly reply us day and night for our tricky questions, you must be thankful to him for his serious efforts specially when they are offering you all this for FREE……..If you don’t like it then don’t need to comment it and don’t need to visit this website! He doesn’t only deserve appreciation but more then that!

      • Profile photo of Miss A.. says

        @hamzaharoon,there is something called Constructive feedback.Not every comment means criticism.It ‘s just that a small illustration would more deeply clarify the concept.Opentution is a blessing for all acca students.

      • Profile photo of hamzaharoon says

        @Miss A.., what he is trying to convey here is that Sir mike wants to get rid of his obligation while other lecturers are performing their duties fully which is a complete insult and shame……I am muslim and one of our caliph Hazrat Ali (R.A) once said that “If anybody teach him one word or sentence then he will always be owed to that person who teach him” this tells us the value of education, May be there are some things which this lecture lacks of but it doesn’t mean that he can insult him the way he did. atleast sir mike is helping us by any means necessary he should be thankful to him

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