Explain how mr. ahmad advise his staff on how to account

Assignment Help Managerial Accounting

Reference no: EM133381287

Case Study: Mr. Ahmad is a manager of Kenanga Sdn. Bhd. which engaged in retail business industry. Kenanga Sdn. Bhd. has been in the business since a decade. Mr. Ahmad's staff is very confused regarding the recording of the transactions. In order to record revenue, there is a specific accounting standard called MFRS 15 Revenue from Contracts with Customers. The following conditions must be fulfilled.

i. The significant risk and rewards of the goods have been transferred to the purchaser of the goods,

ii. The amount of revenue can be measured with sufficient reliability,

iii. The seller of the goods does not hold any control over the goods once it is sold,

iv. There is a significant probability that the buyer of the goods will pay for the goods,

v. The cost of the goods can be measured reliably for the seller.

Required:

Explain how Mr. Ahmad advise his staff on how to account for each transaction below along with reasons to educate him.

a) A customer purchased the shoes from the retail outlet using his credit card on 29th December, 2018 at a price of $500. But it received in Kenanga Sdn. Bhd.'s Merchant bank account on 2nd January, 2019.

b) A corporate client placed a bulk order to the Kenanga Sdn. Bhd. on 15 December, 2018. The order has been fulfilled in December but the client has not paid for it until January.

c) A corporate client requested the luxury furniture on 31st December 2018 amounting to $ 7,000. The furniture was delivered at the client's office on 2nd January, 2019.

d) Kenanga Sdn. Bhd. also sells prepaid vouchers at discount to mass public. This help customer pays in advance to the Kenanga Sdn. Bhd. and shop at their appropriate timing multiple times. The validity of these prepaid vouchers is 6 months.

e) Kenanga Sdn. Bhd. has received an advance payment for its upcoming event from a client in December. Kenanga Sdn. Bhd. has not received any purchase order for the said payment.

Reference no: EM133381287

Questions Cloud

Somatic symptom disorder might interpret catastrophically : What are some examples of normal physical symptoms that someone with somatic symptom disorder might interpret catastrophically?

Write producer and consumer programs that communicate : CSC139 Operating System Principles, California State University - write producer and consumer programs that communicate through a bounded buffer in shared

Do you consider either of these a noncash scheme : Is taking a box of paper clips from the supply cabinet the same as using a company car on a driving vacation? Do you consider either of these a noncash scheme?

Relationship between antecedent conditions and behavior : How does a psychology experiment demonstrate a cause-and-effect relationship between antecedent conditions and behavior?

Explain how mr. ahmad advise his staff on how to account : Explain how Mr. Ahmad advise his staff on how to account for each transaction below along with reasons to educate him. A customer purchased the shoes from

Genetic defects in their family : Should partners be obligated to inform each other of any genetic defects in their family?

Explore mean group differences in your courseroom data : Explore mean group differences in your courseroom data. Is it possible that being in a particular group results in higher or lower mean achievement levels

Purpose of code of practice in community services role : What kind of subjects may be covered in codes of conduct? What is the purpose of a code of practice in a community services role?

Describe one federal and one state public healthcare police : Describe one federal and one state public healthcare police that affect the provision of patient care and healthcare delivery.

User Account

All Pages