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Revenue

Example 1 cont.

Revenue for the machine may be recognised on delivery, revenue in respect
of the support will be spread over the two-year period.

Revenue to be recognised in year ended 31 December 20X7:
$

Machine $270,000 in full 270,000
Support $126,000 × 4/24 21,000

———
Total revenue recognised 291,000

———

Illustrations and further practice

Now try TYU 3 from Chapter 12 of the Study Text.

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