Question
Summarise the income position on the P+L and B/S for the following learner: Co. y/e is 31 May. A learner is on an apprenticeship programme
Summarise the income position on the P+L and B/S for the following learner: Co. y/e is 31 May. A learner is on an apprenticeship programme worth 24k The governing body who provide the funding operates to a 31 July financial year. If the learner's record is not correct at their year end date the cash for that funding year is clawed back. 90% of the programme value is recognised equally over 2 years. 10% of the programme value is recognised when the learner completes their programme (usually a little over 2 years). The learner started on 1 June 2019, it is now 31 Oct 2020. Revenue recognition and funding both commence from start date. Invoices are raised when cash is received. Revenue is reduced for any cash not received. Cash is received as follows: 60% of the programme value is received monthly in arrears, the remaining 40% two months after the learner completes their programme. For funding year ended 31 July 2019 the learner's record was not correctly completed and no cash was paid. This was identified and recorded in Sep 19.
b) What is the accrued income balance (B/S) as at 31 Oct 2020?
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