(a(i))[3]
Explain how this error affects the profit on consignment. Use figures to back up your answer.
(a(ii))[3]
Explain how this error changes the profit for the year. Use figures to support your answer.
(b)[10]
Prepare the consignment account for the year ended 31 December 2018 after correcting the error.
(c)[3]
Calculate the correct total inventory value to be included in Liam’s statement of financial position at 31 December 2018.
(d)[4]
Discuss the advantages to Liam if he enters into this new consignment. Justify your answer.
(e)[2]
Explain one distinction between an agent in a consignment and a party in a joint venture.