Number 3.12

ST3.12 State the amount of revenue that should be reported in the current accounting period and the amount to be brought forward to the next accounting period fo each of the following items. Give a reason(s) to support your answer (a) Goods in hand in the current year with the cost of RM112,250 are expected to be sold at a price of RM240,500 next year are sold with the term 2/10, n/60 and are delivered (b) Goods worth RM650,000 to the customers in the current year. Cash received in the current year for this credit sale is RM600,000 Seasonal tickets of RM45,000 for five soccer tournaments are sold out. Three (c) of the tournaments are conducted in the current year (d) A contract price to build a bridge is RM8,000,000. In the current year, which is the first year of construction, the bridge is expected to be 25% completed at the costs of RM1,500,000. Revenue is recognised based on the percentage of completion. (e) A sales executive receives an order of merchandise from a customer in the current vear and the merchandise will be delivered to the customer in the coming year. The cost of the goods is RM25,000 and the selling price is RM32,750. CAnt