QUESTION THREE

$[25]$

Grazed Limited, a South African company placed an order for inventory from Go Green Limited, a company based in the U$.$S$.$ The inventory was invoiced for $$220000.$

The goods were loaded free on board $($FOB$)$ on $25$ March $2019$ and arrived in South Africa on $5$ April $2019.$

Grazed Limited agreed to pay Go Green Limited in two equal instalments on the $31$ May $2019$ and $31$ August $2019.$

As at $30$ June $2019,65\%$ of the inventory was sold locally for cash.

The remaining inventory was sold for cash during the year ending $30$ June $2020.$

Grazed Limited has a $30$ June year end.

The relevant exchange rates are as follows:

$\backslash$table$[[,1$$$=R$