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February 26, 2020 at 4:51 pm
Hi Chris Barlow Esq.
I had a go at the past paper exam question in relation to IRS 15. Derringdo.
Derringdo sells goods supplied by Gungho. Goods are classed as “A” grade or “B” grade – having slight faults. Derringdo sells A grade goods as an agent for Gungho at a price that gives a gross profit margin of 50%. Derringdo receives a commission of 12.5% on these sales. Derringdo sells B grade goods as a principal at a gross profit margin of 25%. Derringdo provides the following: Stock at 1 April of 2400 A grade Stock at 1 April of 1000 B grade Goods from Gungho year to 31 March 2007 a grade 18,000 b grade 8,800 Inventory held 31 March 2007 a grade of 2000 and b grade of 1250.
My question is what amount of revenue should be recognised in relation to a grade for 31 March 2007. The difference in stock in opening and closing is 400 and goods from Gungho grade a being 18,000 as per the question gives me 18,400 but how do we calculate the fraction?
Kind Regards I Shah
February 26, 2020 at 4:39 pm
February 20, 2020 at 11:34 pm
Hello, I want to ask about revenue recognition on real estate ? How can I recognize revenue
September 7, 2018 at 7:18 pm
I need to understand that the amount of Handset = $360 is which of the set amount because when you divide the voda phone set amount from total amount it naturally gives per unit amount (Handset = (Vodaphone sell amount = 480)/(Vodaphone sell amount+240 call data charges = 720) * (Telephonia sell amount = 540)?
It is request you to kindly tell how to what is the transaction in Debit / Credit and amounts goes into SOFP & SOPL.
August 29, 2018 at 8:49 pm
Hi Gohar, I came across a question just like this in a bpp practice (progress) test today and I got it wrong also. The question was almost exactly as above and I took it that I needed to discount for the 2 years. I think the issue might be that the question asks what amount to put in P&L at y/e 2005 (which is one year from end of “credit period”), so you discount for 1 year….??
Maybe there is a better explanation of this that somebody might offer?
August 20, 2018 at 11:24 pm
Can you please help me to understand the following problem from Kaplan Exam Kit N114.
On 01 April 2004 Company A sold a car to company B on the following terms: Selling price $25,000. B paid $12,650 on 1 April 2004 and would pay the remaining on 31 March 2006 (two years after the sale). Cost pf capital is 10% per annum.
What is the amount which A should credit to P&L in respect of this transaction in the year ended 31 March 2005.
I discounted 2nd half of payment for 2 years, but in answer it is discounted for 1 year only. Can’t get why just 1 year.
Thanks in advance
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