Page 155 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Revenue

Example 7.1

Brayden Co makes a sale of a computer on 1 March 20X1 for $750,000. This
price includes $75,000 for three years after sales servicing. The goods have
been despatched, delivered and the full amount has been received from the
customer.

The reporting date is 31 December 20X1.

Required:

Calculate the amount of revenue that should be recognised in the year
ended 31 December 20X1 in respect of the above transaction. State your
answer to the nearest $.

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