Question 1 Agya Pa Limited received the rights to manufacture and market commemorative gold tokens for Asanteman PLC. Agya Pa agreed to pay Asanteman PLC GHC 2 per token sold, subject to a annual payment of GHC 100,000. Any shortfall in the minimum annual payment is to be recovered within two years following the year in which it arises. minimum During the first five years of the agreement, Agya Pa Limited's sales were as follows: Year to 31 December 2019 2020 2021 2022 Number sold 30,000 40,000 60,000 70,000 45,000 2023 The amount due to be paid to Asanteman PLC in respect of amounts owing as at 31 December was to be paid on 31 January in the following year. Required: Show the ledger entries to be recorded for the above transactions in Agya Pa Limited's books for the years 2019 to 2023.

Question 1 Agya Pa Limited received the rights to manufacture and market commemorative gold tokens for Asanteman PLC. Agya Pa agreed to pay Asanteman PLC GHC 2 per token sold, subject to a annual payment of GHC 100,000. Any shortfall in the minimum annual payment is to be recovered within two years following the year in which it arises. minimum During the first five years of the agreement, Agya Pa Limited's sales were as follows: Year to 31 December 2019 2020 2021 2022 Number sold 30,000 40,000 60,000 70,000 45,000 2023 The amount due to be paid to Asanteman PLC in respect of amounts owing as at 31 December was to be paid on 31 January in the following year. Required: Show the ledger entries to be recorded for the above transactions in Agya Pa Limited's books for the years 2019 to 2023.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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