注会-会计英语讲义(13)

会计英语基础讲义

第十二章 收入、费用和利润 Revenues, Expenses, and Profits

EXAMPLE 1

On 1 October in the current year, a private tuition provider enrols a student on a six-month course. Lectures are held regularly every week over the whole six-month period. The tuition fees are $6,000 and once paid are non-refundable. All books and materials have to be purchased separately. The student pays a first instalment of $3,000 prior to the commencement of the course, and the balance of $3,000 in six, $500 monthly instalments. The tuition provider has a financial year-end of 31

December, and proposes to recognise revenue in the financial accounts on a cash receipt basis. At the year end, the three, monthly instalments due have been received. Required

Advise the tuition provider on the correct accounting treatment for this transaction. Answer：

The proposal is to recognise revenue of $4,500, this being the cash received. This is wrong. The measurement of profit, and hence the recognition of revenue, has to take some account of the matching process（配比过程）. At the year end, exactly one half of the course has been delivered. Accordingly, one half of the revenue can be recognised, ie sales should be $3,000.

Dr. Cash 4,500

Cr. Revenue/Sales 3,000

Cr. Deferred income 1,500

EXAMPLE 2

On 1 November 20X0, a car retailer agreed to sell a motor vehicle for $20,000. At that time, the customer negotiated a three?year free service agreement as part of the

会计英语基础讲义

transaction. This service agreement is normally sold for $1,000. Also, on 1 November 20X0, the customer paid a non-refundable deposit of $2,000. A further $10,000 is payable three months later on 1 February 20X1. The customer has taken advantage of an interest-free offer and will pay the balance of the $8,000 on1 February 20X3. Delivery of the car to the customer will take place on 1 February 20X1. The car

retailer has a financial year end of 31 December and proposes to recognise the sale of the car at $20,000 in the financial accounts for the current year.

Required

Advise the car retailer on the correct accounting treatment for this transaction. Answer：

1 November 20X0

Dr. Cash 2,000

Cr. Deferred income 2,000

EXAMPLE 3

On 1 December in the current year, an Internet travel agent accepts a payment by credit card of $1,000 in respect of a hotel booking for the following February. The travel agent confirms the booking and issues the customer with an appropriate

receipt. In due course, the Internet travel agent will pay $900 to the hotel. Having received $1,000 from the customer (Dr Cash $1,000), the Internet travel agent

proposes to immediately recognise $1,000 as revenue in the current year (Cr Sales $1,000). It will then record the liability to pay the hotel (Cr Liability $900), and complete the double entry by posting this as an expense (Dr Expense $900). The Internet travel agent has a financial year end of 31 December.

Required

Advise the Internet travel agent on the correct accounting treatment for this transaction.

Answer：

It appears that the Internet travel agent has indeed acted as only an agent and not as a principal. All it has done is to provide an introduction. It has not actually been responsible for the provision of a bed for the night.

The revenue that it should recognize, therefore, should be confined to the

commission that it is due. This is only $100. This revenue is earned on 1 December