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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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