• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
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
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

ACCA Webinars: How to earn marks in Strategic Professional Exams. Learn more >>

20% off BPP Books for ACCA & CIMA exams - Get BPP Discount Code >>

Control account

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Control account

  • This topic has 1 reply, 2 voices, and was last updated 3 months ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 10, 2022 at 5:48 am #655290
    BoryanaNikolova
    • Topics: 3
    • Replies: 3
    • ☆

    can you help me with answering this task?
    invoices for 5000 raised to customer by Y Ltd.5% discount if customer pays within 14days.Y Ltd expects invoices for 2000 to be paid with discount.customer paid 2850 with face value 3000 and advantage of 150 as a discount.
    the answer is:
    Dr receiv.4900 Cr Sales 4900
    Dr Cash 2850 Cr receiv 3000
    Dr sales 150
    why is 4900? it shoudlnt be 5000 when the full discount is entered in Sales 150 or RLCA should be 4900 but Sales discount should be only 50

    May 10, 2022 at 9:32 am #655308
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49921
    • ☆☆☆☆☆

    As I explain in my free lectures on IFRS 15, the invoices should be recorded net of any discount that they are expecting the customer to take.

    Here, they invoice 5,000 and are expected the customer to take a discount of 5% x 2,000 = $100.

    Therefore they expect to receive $4,900 and so they will Dr Receivables 4,900 and Cr Sales $4,900.

    As far as the second entry is concerned, then assuming you have typed out the whole question correctly, then the question is worded very badly. The answer has assumed that the invoice of $3,000 that is being paid was the other $3,000 (5,000 – 2,000) that they were not expecting the discount to be taken on. When a discount is taken that was not expected to be taken (here $150), then the entry is as stated in your answer – the $150 is taken from sales.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

ACCA Introducing professional skills into the Options exams

ACCA Professional Skills Webinar – Register now

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • John Moffat on FA Chapter 23 Questions Group Accounts The Consolidated Statement of Financial Position (2)
  • John Moffat on Double Entry Bookkeeping (part b) – ACCA Financial Accounting (FA) lectures
  • John Moffat on MA Chapter 5 Questions Ordering and Accounting for Inventory
  • John Moffat on MA Chapter 5 Questions Ordering and Accounting for Inventory
  • John Moffat on FA Chapter 4 Questions Accruals and Prepayments

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy