(a)[5]
Prepare Aiona’s account in Julia’s books for the year ending 31 December 2020.
(b)[5]
Set out the journal entry that corrects the mistake in the freight charges. A narrative is needed.
(c)[9]
Explain how the error affected the value of inventory in Julia’s draft statement of financial position. Use calculations to support your response.
(d)[2]
Explain how the error affected Julia’s draft profit for the year.
(e)[4]
Complete the table below to indicate which consignment-related items appear in which financial statements of a consignee. State the section of the financial statement where each item is shown.