Question $1$:

$(25$ marks$)$

On $14$ November $2023$ Flying Solo Airlines $($Piy$)$ Lid had a sale on their retum vickets from Johannesburg to Cape Town. As a result, $15$ return airline lickets of R$1250$ each were seid to passengers travelling in May $2024.$

Payment for these tickets were made by the passengers on the $15$ November $2023$ and transferred into Flying Solo Airlines $($Pty$)$ Lid's bank account. Payment was reflected in the bank account on the $17$ November $2023.$

The financial year end of Flying Solo Airline $($Pty$)$ Ltd is $31$ December $2023.$

Required:

Advise Flying Solo Airline $($Pty$)$ Lid on how the sale of the airline tickets should be classified and measured in the financial statements for the year ended $31$ December $2023.$

Your answer should refer to the elements of financial statements as identified in the Conceptual Framework.