In August 2022, Tshepo supplied beef to a Food Joint in Ramotswa. She has recently learned...

 

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In August 2022, Tshepo supplied beef to a Food Joint in Ramotswa. She has recently learned that some of the Food Joint's customers experienced food poisoning. . As a result of these incidents, the eatery has alleged that Tshepo's beef is responsible and has initiated legal proceedings against her. • Lorato, a local solicitor specializing in food-poisoning cases, has informed Tshepo that she faces a 42% likelihood of losing the case. In the event of losing. Tshepo will likely be required to pay BWP300, 000.00 to settle the liability. a) Assess the nature of Tshepo's liability, (4 marks) and support your answer by showing how should it be treated in her financial statements (6 marks) for the year ended 31 August, 2022? In August 2022, Tshepo supplied beef to a Food Joint in Ramotswa. She has recently learned that some of the Food Joint's customers experienced food poisoning. . As a result of these incidents, the eatery has alleged that Tshepo's beef is responsible and has initiated legal proceedings against her. • Lorato, a local solicitor specializing in food-poisoning cases, has informed Tshepo that she faces a 42% likelihood of losing the case. In the event of losing. Tshepo will likely be required to pay BWP300, 000.00 to settle the liability. a) Assess the nature of Tshepo's liability, (4 marks) and support your answer by showing how should it be treated in her financial statements (6 marks) for the year ended 31 August, 2022?

Answer rating: 100% (QA)

Based on the information provided Tshepos liability arises from the potential for her beef products ... View the full answer