• 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
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

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

Revenue recognition

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Revenue recognition

  • This topic has 1 reply, 2 voices, and was last updated 13 years ago by MikeLittle.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • June 1, 2012 at 4:48 pm #53025
    dongqin14
    Member
    • Topics: 1
    • Replies: 5
    • ☆

    Hi
    I got problem on revenue recognition question relates to unbundling.
    -what is unblinding? Is it like unwinding, dealing with time value of money?

    Q: furniture sells for £1000 at the beginning of the year, paid off by two instalment of £500 at end of year1 and2. Interest rate 16%.

    Answer:
    Opening int paid Closing
    Y1, 803 128 (500) 431
    Y2, 431 69 (500) 0

    -When initially recognise the sale, which figure will appear in I/S
    803? 931? 1000?

    -And for the interest of 128 and 69, they will be take into I/S as interest income or expense? What is the double entry?

    -Is above treatments similarly to unwinding?

    Wait for your reply, thanks.

    June 4, 2012 at 5:06 pm #99023
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23323
    • ☆☆☆☆☆

    Yes, it’s discounting to get the present value of the $1,000 receivable in two instalments.

    Dr Accounts Receivable, Credit Revenue with 803. Year 1

    Dr Accounts Receivable, Credit Finance Income with 128 Year 1

    Dr Cash Credit Accounts Receivable with 500

    Dr Accounts Receivable, Credit Finance Income with 69 Year 2

    Dr Cash, Credit Accounts Receivable with 500

  • 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

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • kennedyavege@2023 on Relevant Cash Flows for DCF Relevant Costs (example 1) – ACCA Financial Management (FM)
  • mrjonbain on ACCA BT Chapter 6 – Some legal obligations – Questions
  • Ken Garrett on ACCA BT Chapter 6 – Some legal obligations – Questions
  • Ken Garrett on The nature and structure of organisations – ACCA Paper BT
  • OmarAlbeity on ACCA BT Chapter 6 – Some legal obligations – Questions

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