QUESTION $4$

GolSen Gate Co enters into a contract with a major chain of retail stores. The customer conmats to buy at least GHC $20m$ of products over the next $12$ months. The terms of the contract require Golden Gate Co to make a payment of GHClm to compensate the customer for changes that it will need to make to its retail stores to accommodate the products.

By $31$ March $2023,$ Golden Gate Co has transferred products with a sales value of GHC $4m$ to the customer.

How much revenue should be recognised by Golden Gate Co in the year ended $31$ March $2023?$

QUESTION $5$

Rent$-$a wreck Ltd sells a Mazda CX$7$ and a year's free servicing for GHC $2,000,000$ to Kwame. It usually sells the car for GHC$1,900,000$ but does not sell technical support for this machine as a stand$-$alone prodact. Other support services offered by Rent$-$a$-$wreck Letd attract a mak$-$up of $50\%.$ It is expectod that the servicing of the car will cost Rent$-$a$-$wreck Led GHC $400,000.$

Required: How whould the tranuaction price be allocated between the car and the servicing of the car.