• Skip to primary navigation
  • Skip to main content
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
    • BT
    • MA
    • FA
    • LW
    • PM
    • TX-UK
    • FR
    • AA
    • FM
    • SBL
    • SBR
    • AAA
    • AFM
    • APM
    • ATX
    • Dates
    • What is ACCA

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March and June 2025 exams.
Get your discount code >>

ACCA F7 Exam Question 2 Dune (June 2010)

VIVA

ACCA F7 past exams lectures Download ACCA F7 Q&A


Reader Interactions

Comments

  1. Radu says

    March 3, 2014 at 11:41 am

    Hello,

    I have a question regarding the way revenue and receivables from the construction contract are recognised.
    We have $12000 in Revenue which goes into Profit & Loss, and yet the amount recorded in Receivables is $13400. I understand the basis for calculations however, where exactly is the rest of $1400 in the SOFP?

    Why revenue is credited by 12000 (40000*30%), and the receivables debited by $1400 more, $13400 (11000 materials and labour +3000 depreciation). Why isnt the same basis for calculation used in both cases, revenue and receivables? Again, the SOPA is balanced, yet how, where’s the $1400.

    Thank you

    Log in to Reply
    • Radu says

      March 3, 2014 at 1:30 pm

      I managed to figure it out..

      Dr: Assets 9000
      Amount due (bal.fig.) 13400
      Cr: Construction contract (per tb) 20000 (-)
      Ret earning (profit) 2400 (+)

      Hopefully I got it right.. wasn’t complicated after all

      Log in to Reply
  2. gabikar says

    November 21, 2012 at 6:28 pm

    Good evening. Probably a silly question but in case of Dune point 4- goods with cost of $6m have been invoiced to customers at a gross profit of 25% on sales… If we use here PUP calculation, it would be 25/100*6m= $1.5m profit. If I add cost of $6m plus profit of $1.5m, sales come to $7.5m as opposed to $8m. Why is that? Thanks

    Log in to Reply
    • MikeLittle says

      November 21, 2012 at 7:06 pm

      @gabikar, Because if they are invoiced at a gross profit of 25% on sales, that means that the cost of the goods is 75% of the transfer price ie 75% of the value invoiced to the buying company.

      Try it! If your 1.5 was correct, the gross profit would be 1.5/7.5 = only 20%

      But if you put 2 as the profit, the pup fraction becomes 2 / 8 = 25%

      Log in to Reply
  3. ibrahim35 says

    April 25, 2012 at 7:19 am

    Server not found: rtmpt://r.acca.opentuitioncom.netdna-cdn.com:80/play

    what is aproblem

    Log in to Reply
    • admin says

      April 25, 2012 at 8:58 am

      Please click here https://opentuition.com/support/video-server-error/

      Log in to Reply
  4. olukemisola says

    December 13, 2010 at 8:15 pm

    thanks.

    Log in to Reply
  5. mik1976 says

    November 16, 2010 at 1:42 pm

    Am using BPP F7 study text, could anyone share me anything on consolidation (international), cashflow and Ratios

    Log in to Reply
  6. joanne007 says

    November 13, 2010 at 10:46 am

    Can you post your tips for the Dec 2010 F7 exam?? The tips on the main screen are for June 2010. Thanks so much.

    Log in to Reply
  7. urvashi says

    November 7, 2010 at 4:59 pm

    found the exam question run through very helpful

    Log in to Reply
  8. lalat2 says

    October 27, 2010 at 1:48 pm

    it is refusing to play

    Log in to Reply

Leave a Reply Cancel reply

You must be logged in to post a comment.

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in