Accounting/Maths help....ikmanata udaw karanna....

[4keven4]

Please help soon...
this is accounting..but sort of with a maths touch..mama dan hunter eke inne concentrate karanna ba...
udaw karanna accounting plus maths podi knowledge ekak thiyene pinwethak....

Ace Silver runs a music school for young pianists. Beginners pay in advance for the first 52 weekly lessons at a rate of $5 per lesson, while more advanced students pay $7.50 per lesson in advance. Ace's financial year runs from 1 July to 30 June. On 30 June 2008 Ace had 20 beginners with an average of 20 lessons each paid in advance, plus a further 30 advanced students with an average of 10 lessons paid in advance. Cash receipts for the year ended 30 June 2009 amounted to $25 650. At 30 June 2009, Ace had received advance payments for 500 lessons for beginners and 250 lessons for advanced students.

Given the above information, what is the revenue earned by Ace from piano lessons for the year ending June 30 2009?

 

[4keven4]

apoy

 

[¤--bACarDi--¤]

sorry machan. mamai migarai witharai online inne
mama commerce kaleth na migara iskole gihillath ne sorry.org

 

[Tom Riddle]

Revenue is NOT related to the amount of CASH received. It is related to the amount of money that should have been received relating to this period. (
Accruals Concept)

At the beginning of the period (30/06/2008), Ace has 400 (20*20) beginner course advanced payments and 300 (30*10) advanced course advanced payments.

Since these are for 20 and 10 lessons each, they fall within the time frame of the financial year, and should be taken as revenue for that year.

The CASH received THIS YEAR is 25650.
The actual CASH for the ADVANCED payments would have been RECEIVED in the PREVIOUS year.

However, the revenue relates to this year (the students will be having the lessons this year), therefore, we should ADD this amount to the cash received this year when calculating the revenue for this year.



The advanced payments that are existing at the end of the year relate to the following year (the students will be provided the services the following year). Therefore they don't relate to this year.
However, we would have received CASH for the services that we would be supplying the following year.
Since this is not relevant for this year, we have to DEDUCT this amount from the cash received to get at the revenue for this year.

Therefore

Revenue for this year =

Cash received this year (25650) +

advanced payments at beginning of year (400*5 + 300*7.5) -

advanced payments at end of year (500*5 + 250*7.5)

= 25525

 

[4keven4]

Revenue is NOT related to the amount of CASH received. It is related to the amount of money that should have been received relating to this period. (
Accruals Concept)

At the beginning of the period (30/06/2008), Ace has 400 (20*20) beginner course advanced payments and 300 (30*10) advanced course advanced payments.

Since these are for 20 and 10 lessons each, they fall within the time frame of the financial year, and should be taken as revenue for that year.

The CASH received THIS YEAR is 25650.
The actual CASH for the ADVANCED payments would have been RECEIVED in the PREVIOUS year.

However, the revenue relates to this year (the students will be having the lessons this year), therefore, we should ADD this amount to the cash received this year when calculating the revenue for this year.



The advanced payments that are existing at the end of the year relate to the following year (the students will be provided the services the following year). Therefore they don't relate to this year.
However, we would have received CASH for the services that we would be supplying the following year.
Since this is not relevant for this year, we have to DEDUCT this amount from the cash received to get at the revenue for this year.

Therefore

Revenue for this year =

Cash received this year (25650) +

advanced payments at beginning of year (400*5 + 300*7.5) -

advanced payments at end of year (500*5 + 250*7.5)

= 25525

ela kollek...
accept karapan mage friend request eka machan....
rep+++++

 

[4keven4]

sorry machan. mamai migarai witharai online inne
mama commerce kaleth na migara iskole gihillath ne sorry.org

ay ban mei ona tharam users la inne online....
mona migara ganada umbe oya kiyanne?

 

[Tom Riddle]

ela kollek...
accept karapan mage friend request eka machan....
rep+++++

kala kala