Page 176 - F2 Integrated Workbook STUDENT 2019
P. 176
Chapter 7
Example 7.3
Leon Ltd sells a car to Larry on 31 December 20X1 for $4 million. Larry is not
required to settle the invoice until 31 December 20X4.
Larry can borrow money at a rate of 5%.
How will Leon Ltd account for the above transaction in the year ended
31 December 20X1 and 31 December 20X2?
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