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On 1 December 2019 Airline de Afrique sold ten return airline tickets for R12 500 each to passengers travelling to London in April 2020. The passengers transferred payment for the air tickets into Airline de Afrique’s bank account on 5 December 2019.   The financial year end of Airline de Afrique is 31 December 2019.   Required: Advise Airline de Afrique how the sale of the airline tickets should be classified and measured in the financial statements for the year ended 31 December 2019.   Your answer should refer to the elements of financial statements as identified in  the Conceptual Framework

On 1 December 2019 Airline de Afrique sold ten return airline tickets for R12 500 each to passengers travelling to London in April 2020. The passengers transferred payment for the air tickets into Airline de Afrique’s bank account on 5 December 2019.   The financial year end of Airline de Afrique is 31 December 2019.   Required: Advise Airline de Afrique how the sale of the airline tickets should be classified and measured in the financial statements for the year ended 31 December 2019.   Your answer should refer to the elements of financial statements as identified in  the Conceptual Framework

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter3: Accrual Accounting
Section: Chapter Questions
Problem 2MCQ: In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in...
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On 1 December 2019 Airline de Afrique sold ten return airline tickets for R12 500 each to passengers

travelling to London in April 2020. The passengers transferred payment for the air tickets into Airline

de Afrique’s bank account on 5 December 2019.

 

The financial year end of Airline de Afrique is 31 December 2019.

 

Required:

Advise Airline de Afrique how the sale of the airline tickets should be classified and measured in the

financial statements for the year ended 31 December 2019.

 

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

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