Safety Ltd purchased goods for £20,000 from a British supplier on 1 April 2005. The amount owing on the purchase is payable on 30 July 2005. On 1 May 2005 a forward-exchange contract for the delivery of £20,000 on 30 July 2005 is taken out with Aus Bank. Safety Ltd's reporting date is 30 June. Exchange rates are as follows:

What entries are required to report these transactions in accordance with AASB 121 (rounded to the nearest whole $A)?

Question

Safety Ltd purchased goods for £20,000 from a British supplier on 1 April 2005. The amount owing on the purchase is payable on 30 July 2005. On 1 May 2005 a forward-exchange contract for the delivery of £20,000 on 30 July 2005 is taken out with Aus Bank. Safety Ltd's reporting date is 30 June. Exchange rates are as follows:

What entries are required to report these transactions in accordance with AASB 121 (rounded to the nearest whole $A) ?

What entries are required to report these transactions in accordance with AASB 121 (rounded to the nearest whole $A)?

Quizplus · Accepted Answer

The Answer of Safety Ltd purchased goods for £20,000 from a British supplier on 1 April 2005. The amount owing on the purchase is payable on 30 July 2005. On 1 May 2005 a forward-exchange contract for the delivery of £20,000 on 30 July 2005 is taken out with Aus Bank. Safety Ltd's reporting date is 30 June. Exchange rates are as follows:

What entries are required to report these transactions in accordance with AASB 121 (rounded to the nearest whole $A)?

Safety Ltd Purchased Goods for £20,000 from a British Supplier