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)?

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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