PART A

Specs Limited placed an order for 500 Contact Lenses Cleaning Solution to LCS

Limited, a manufacturer in the UAE. The order was placed on the 15th of January 2020

and was accepted by LCS Limited on the 18th of January 2020. On the 27th of January

2020, the order was completed and packed for delivery. On the 1st of February 2020,

the stock was delivered to the harbour and loaded onto the ship. Due to industrial strike

action by staff at the Port, the ship had to delay its leaving of the Port.

The ship eventually left the harbour on the 4th of February 2020 and arrived in Durban on the 31

March 2021. The inventory was off loaded and released from Customs on the same

day. On the 3rd of April, the inventory was delivered to Spec Limiteds warehouse.

Payment for the order was made on the 30th of April 2020. Spec Limiteds financial year

end is 28th February.

REQUIRED

1. State the transaction, translation and settlement dates assuming the solutions

were shipped CIF. (3)

2. State the transaction, translation and settlement dates assuming the solutions

were shipped FOB. (3)

PART B

3. Blankets & Tents Limited is a company based in South Africa involved in the

manufacture and supply of blankets, tents and related products. In the current

year, the company imported a container of blankets and tents for

refugee/displacement purposes from an American company. Total invoice value

after discount was $150 000. The container was ordered on the 15th of March

2021 then shipped on the 6th of July 2021 (CIF) and arrived in South Africa on

the 1st August 2021. The company sold 80% of the goods ordered to a local

humanitarian organization by the 31st of December 2021 with a markup on 20%

on cost. Payment of the goods took place on the 15th of January 2022 as

requested by the supplier. Blankets & Tents Limited has a 31st December year

end.

DATE EXCHANGE RATE

15 March 2021 $1 = 15

6 July 2021 $1 = 15,2

1 August 2021 $1 = 15,6

31 December 2021 $1 = 15,1

15 January 2022 $1 = 14,9

required :

Show all the journal entries in the books of Blankets & Tents Limited for the year ended

31 December 2021 and journals for January 2022. Please include narrations and dates

and workings

Thank you