Matlhakala (Pty) Ltd in Botswana sold goods overseas for £200,000 on 28 March 2013 when the exchange rate was £0.65: P1. The customer paid in April 2013 when the rate was £0.70: P1. The exchange rate at the year ended 30 June 2013 was £0.75: P1. Prepare the journal entries to record the sale of the goods by the Botswana entity. Show the journal entries to record the payment in April 2013. If the amount was outstanding at the year-end, Calculate the gain or loss in the statement of profit or loss be?

Matlhakala (Pty) Ltd in Botswana sold goods overseas for £200,000 on 28 March 2013 when the exchange rate was £0.65: P1. The customer paid in April 2013 when the rate was £0.70: P1. The exchange rate at the year ended 30 June 2013 was £0.75: P1. Prepare the journal entries to record the sale of the goods by the Botswana entity. Show the journal entries to record the payment in April 2013. If the amount was outstanding at the year-end, Calculate the gain or loss in the statement of profit or loss be?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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