On 1 5 October 2 0 2 3 , Purple Press ( Pty ) Ltd entered into
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OnOctoberPurple PressPtyLtd entered into a contract with Plus AccountingPtyLtd in terms of which Purple PressPtyLtd will supply all of their offices with
brand new Businessci printers.
Plus AccountingPtyLtd has five offices, and they require two printers per office. Plus
AccountingPtyLtd will pay an allinclusive price of Rper printer. Besides
the printer unit, the purchase price also includes the setup and configuration of each
of the printers, as well as amonth maintenance contract.
The printers were delivered to Plus AccountingPtyLtd onOctoberThe setup and configuration of the printers were done by Purple PressPtyLtds technicians
onOctoberPlus AccountingPtyLtd paid the full purchase price on
November
The following prices were applicable on the transaction date:
Cost price Sales price
Businessci printer RR
Technician servicesNoteRper hour Rper hour
NoteDue to salary increases, the cost price and the sales price per technician
hour will increase byeffectiveJanuaryand anothereffective
January
The setup and configuration of a Business ci printer normally takes minutes
for a technician to complete.
For maintenance contracts Purple Press Pty Ltd charges their clients a standard
technician hours per month per printer, irrespective of whether the client makes use
of the full hours per month. With reference to Transaction allocate the transaction price according to
Step of the step approach in accordance with IFRS of the International
Financial Reporting Standards. Note: Assume the discount included in the
transaction price to be attributable to all performance obligations included in the
contract.
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Related Book For
Business Law The Ethical Global and E-Commerce Environment
ISBN: 978-0071317658
15th edition
Authors: Jane Mallor, James Barnes, Thomas Bowers, Arlen Langvardt
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