Tamara is an investor who recently set up a firm which manufactures detergent pastes. The following events
Question:
Tamara is an investor who recently set up a firm which manufactures detergent pastes. The following events occurred a month after the business was set up:
1) On 10th January, 2009 an order was received from Mika trading Ltd for 50 boxes of the detergent pastes worth K1.0 million.
2) On 12th January 2009 an amount of K1.0million was received from Mika trading Ltd in full settlement
3) On 13th January 2009 the cheque was deposited in Mr D. Parker's current account
4) On 10th February 2009 80% of the order was complete.
5) On 15th February 2009 the order was ready for delivery.
6) On 5th March 2009 the order was delivered.
Required:
1) As an accountant can you please state the date on which you may record the transactions below in the books of accounts, both from the seller's point of view and the buyer's point of view taking into account the relevant accounting requirements necessary.
Auditing An International Approach
ISBN: 978-0071051415
6th edition
Authors: Wally J. Smieliauskas, Kathryn Bewley