Acca financial Accounting (FA) Study Text ac ca (FA)

Chapter 17 

KAPLAN PUBLISHING

315 

AMS Co acted as an agent on behalf of another entity to arrange the sale 

of goods to Customer C. The goods were delivered to Customer C on 

25 June 20X4 at a total price of $600, inclusive of sales tax of 20%. AMS 

Co is entitled to 10% commission on the sales price as soon as the 

goods are delivered. 

Required: 

(a)

How much revenue can AMS Co recognise in its financial

statements for the year ended 30 June 20X4 in relation to the

transaction with Customer A?

$

_______

(b)

What was the amount included within trade receivables at

30 June 20X4 in relation to the contract with Customer A?

$

_______

(c)

How much revenue can AMS Co recognise in its financial