Vision 2020 Ltd is a China-based company that manufactures Samsung flat screens of all sizes. In January 2019 it consigned 2,000 television sets (49 inch) to its agent Best electronics ltd in Uganda at a cost of Shs 1,500,000 each. Vision 2020 Ltd incurred the following expenditure on sending the consignment: Freight Shs. 12,500,000 and Insurance Shs. 4,600,000. Best electronics Ltd received the delivery of 1800 flat screens. An account sale dated 30th Match 2019 showed that 1700 television sets were sold for Shs. 1,700,000 each and Best electronics Ltd incurred Shs 15,000,000 on carriage. Best electronics Ltd was entitled to commission of 8% on the sales effected by her. Best electronics Ltd incurred expenses amounting to Shs 2,000,000 for repairing the damaged television sets that were remaining in the stock. Vision 2020 Ltd lodged a claim with the insurance company but the insurance company refused to pay due to a default in the policy. Required:Show the Consignment Account and the consignees Account in the books of Vision 2020 ltd
Vision 2020 Ltd is a China-based company that manufactures Samsung flat screens of all sizes. In January 2019 it consigned 2,000 television sets (49 inch) to its agent Best electronics ltd in Uganda at a cost of Shs 1,500,000 each. Vision 2020 Ltd incurred the following expenditure on sending the consignment: Freight Shs. 12,500,000 and Insurance Shs. 4,600,000. Best electronics Ltd received the delivery of 1800 flat screens. An account sale dated 30th Match 2019 showed that 1700 television sets were sold for Shs. 1,700,000 each and Best electronics Ltd incurred Shs 15,000,000 on carriage. Best electronics Ltd was entitled to commission of 8% on the sales effected by her. Best electronics Ltd incurred expenses amounting to Shs 2,000,000 for repairing the damaged television sets that were remaining in the stock. Vision 2020 Ltd lodged a claim with the insurance company but the insurance company refused to pay due to a default in the policy.
Required:
Show the Consignment Account and the consignees Account in the books of Vision 2020 ltd
Step by step
Solved in 2 steps with 4 images
