11) When is the following income derived?  (a) A karate instructor opened a karate school on 1 July CY and received fees in advance

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11) When is the following income derived? 
(a) A karate instructor opened a karate school on 1 July CY and received fees in advance. 
However, where the full courses of lessons were not taken pupils received a refund. Fees received 
during the year amounted to $26,500. Fees received during the year in respect of lessons still to be 
taught amounted to$1,500. 

 

 

 

12. How much income is derived in the current year 
(b) Alanis a dentist who operates with the assistance of a full-time receptionist and 2 part-time 
dental therapists. Alan has issued bills of $500,000 of which he has received $450,000. Of the 
remaining $50,000, $22,000 represents work done for which the clients have arranged to pay off the 
bill in monthly instalments. The remaining $28,000 represents amounts on invoices sent out but not 
yet due. In addition to the $450,000 Alan also received $52,000 on amounts outstanding from last 
year and $15,000 time payments.