Masuwa Limited, a South African company that manufacturers perfume bought
16 new Fragrance testing machines for use in its laboratory in Johannesburg. The
machines were imported from Estell Lord, a company based in France that produces equipment for companies in the perfume industry.
Details relating to the purchase of these machines are as follows:
- The machines were ordered on 25th April 2017.
- The machines were shipped on 15′” June 2017.
- The machines arrived in South Africa on 1st September 2017
- The total invoice price was € 30 000, invoiced on a free-on-board basis (FOB)
- MasuwaLimited paid the French supplier on 30 September, 2017.
The machines needed to be installed before they could be put into operation.
- Installation was completed by In and Out Limited on 25 September 2017
- In and Out Limited furnished the company with an invoice for R 60 000.
- The machines were available for use on 1 October 2017 but due to labor unrest, these were only bought into use on 31 October 2017
- The machines have a residual value of R50 000 and a useful life of 8 years
Show all journals in the books of Masuwa Limited for the year ended 31 December