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Adnan Limited ( AL ) is a supplier of machinery and spare parts. The machines supplied are installed by AL . Following transactions took place
Adnan Limited AL is a supplier of machinery and spare parts. The machines supplied are installed by AL Following transactions took place in the last week of the accounting year ie June :
i A machine was delivered to a customer. The invoiced amount was Rs; In accordance with the Operating manual, the customer had to arrange a voltage stabilizer before connecting the machine to the power supply. The machine became operational on July
ii A specialized machine was sold to Sun Technologies ST for Rs ST agrees to make the payment on July However, ST informed AL that it would accept the delivery in the month of august
Required:
Applying the principles of IAS explain when revenue from the sale of the above machines may be recorded.
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