Preparation of a statement of profit or loss

Assignment Help Financial Accounting

Reference no: EM133082081

ACCG224 Financial Accounting and Reporting - Macquarie University

Exercise 1 - Revenue Recognition - Sale of Goods

In each of the following situations, state at which date, if any, revenue will be recognised:

1. A contract for the sale of goods is entered into on 1 May 2013. The goods are delivered on 15 May 2013. The buyer pays for the goods on 30 May 2013. The contract contains a clause that entitles the buyer to rescind the purchase at any time. This is in addition to normal warranty conditions.

2. A contract for the sale of goods is entered into on 1 May 2013. The goods are delivered on 15 May 2013. The buyer pays for the goods on 30 May 2013. The contract contains a clause that entitles the buyer to return the goods up until 30 June 2013 if the goods do not perform according to their specification.

3. A contract for the sale of goods is entered into on 1 May 2013. The goods are delivered on 15 May 2013. The contract contains a clause that states that the buyer shall only pay for those goods that it sells to a third party for the period ended 31 August 2013. Any goods not sold to a third party by that date will be returned to the seller.

4. Retail goods are sold with normal provisions allowing the customer to return the goods if the goods do not perform satisfactorily. The goods are invoiced on 1 May 2013 and the customer pays cash for them on that date.

Exercise 2 - Statement of Profit or Loss And Other Comprehensive Income

Required
Prepare the statement of profit or loss and other comprehensive income of Lachlan Ltd for the year ended 30 June 2013, showing the analysis of expenses in the statement.

Lachlan Limited
Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2013

Exercise 3: Preparation of a Statement of Profit or Loss And Other Comprehensive Income

Required
Prepare the statement of profit or loss and other comprehensive income of Oliver Ltd for the year ended 30 June 2013 in accordance with AASB 101, showing the analysis of expenses by function in the statement.

Oliver Ltd
Statement of Profit or Loss and Other Comprehensive Income for the year ended 30 June 2013

Reference no: EM133082081

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