Question $1$: $(25$ marks$)$

On $14$ November $2023$ Flying Solo Airlines $($Pty$)$ Ltd had a sale on their return tickets from

Johannesburg to Cape Town. As a result, $15$ return airline tickets of R$1250$ each were sold

to passengers travelling in May $2024.$

Payment for these tickets were made by the passengers on the $15$ November $2023$ and

transferred into Flying Solo Airlines $($Pty$)$ Ltd$$s bank account. Payment was reflected in the

bank account on the $17$ November $2023.$

The financial year end of Flying Solo Airline $($Pty$)$ Ltd is $31$ December $2023.$

Required:

Advise Flying Solo Airline $($Pty$)$ Ltd on how the sale of the airline tickets should be classified

and measured in the financial statements for the year ended $31$ December $2023.$

Your answer should refer to the elements of financial statements as identified in the

Conceptual Framework.