31 January 20,2
Spot Rate = R10,84
Dt Inventory 2,005,400.00
Cr Creditor 2,005,400.00
Working = (GBP 185 000 X 10.84)
31 March 20,2
Spot Rate = R10,90
Dt Forex Loss (P And L) 11,100.00
Cr Creditor 11,100.00
Working ( GBP 185 000 X (R10,90 - R10,84)
Creditor Now - R10,90 X 185 000 2,016,500.00
Creditor At Initial Recogn -R10, 84 X 185 000 2,005,400.00
11,100.00
31 March 20,3
Dr Creditor 42,550.00
Ct Forex Gain (P And L) 42,550.00
Creditor Now - R10,67 X 185 000 1,973,950.00
Creditor At Translation R10, 90 X 185 000 2,016,500.00
- 42,550.00
31 March 20,4 - Settlement Date
Spot Rate = R10,75
Dt Forex Loss (P And L) 14,800.00
Cr Creditor 14,800.00
Creditor Now - R10,75 X 185 000 1,988,750.00
Creditor At Translation R10, 67 X 185 000 1,973,950.00
14,800.00
Settlement GBP 185 000 X R10,75 1,988,750.00
PAYMENT
Dr Creditor GBP 185 000 X R10,75 1,988,750.00
Cr Bank 1,988,750.00
Transaction Foreign
Event Rate exchange
value
gain/loss
Quote 13.00 65,000 0 no transaction entered into
Order placed 13.50 67,500 0 no transaction entered into
Delivery and invoice 13.25 66,250 0 transaction date - recognise inventory and payble
Payment to supplier 14.00 70,000 -3750 Forex loss
GBP value = 5000
entory and payble
Information given At recognition date: spot rate USD 1 = R7,50
Loan issue date 30 April 20.2
Loan value $ 1,000,000 DATE ACCOUNT
Repayment date 31 January 20.3 30.4.20.2 Loan receivable
Interest rate p.a 6% Bank
At year end: 31 December 20.2
1. Recognise interest: at average rate USD 1 = R7,75
Interest for the period (May 20.2 to December 20.2)
$1 000 000 x 6% x 8/12 $ 40,000.00
Translated into Rands R 310,000.00
DATE ACCOUNT
31.12.20.2 Interest receivable
Interest income
2. 'Remeasure' the interest receivable (financial asset) at year end: at s
USD1 = R8,00
$40 000 x 8,00 R 320,000
Receivable initially recognised R 310,000
Forex gain R 10,000
DATE ACCOUNT
31.12.20.2 Interest receivable
Forex gain
3. 'Remeasure' the loan receivable (financial asset) at year end: spot ra
USD 1 = R8,00
1 000 000 x 8,00 R 8,000,000
Loan initially recognised R 7,500,000
Forex gain R 500,000
DATE ACCOUNT
31.12.20.2 Loan receivable
Forex gain
At settlement date: 31 January 20.3
1. Recognise interest: at average rate USD 1 = R8,10
Interest for the period (January 20.3)
$1 000 000 x 6% x 1/12 $ 5,000.00
Translated into Rands R 40,500.00
DATE ACCOUNT
31.01.20.3 Interest receivable
Interest income
2. 'Remeasure' the interest receivable (financial asset) at year end: at s
USD1 = R8,25
$45 000 x 8,25 R 371,250
Interest receivable recognised to date R 360,500
Forex gain R 10,750
DATE ACCOUNT
31.01.20.3 Interest receivable
Forex gain
3. 'Remeasure' the loan receivable (financial asset) at settlement date:
USD 1 = R8,25
1 000 000 x 8,25 R 8,250,000
Loan balance recognised at 31.12.20.2 R 8,000,000
Forex gain/loss R 250,000
DATE ACCOUNT
31.01.20.3 Loan receivable
Forex gain
4. Settlement of loan and interest
DATE ACCOUNT
31.01.20.3 Bank
Interest receivable
Loan receivable
Journals
Date
DEBIT CREDIT 30.4.20.2
R 7,500,000
R 7,500,000
31.12.20.2
DEBIT CREDIT 31.12.20.2
R 310,000
R 310,000
al asset) at year end: at spot rate 31.12.20.2
31.12.20.2
DEBIT CREDIT 31.12.20.2
R 10,000
R 10,000
31.12.20.2
set) at year end: spot rate
DEBIT CREDIT
R 500,000
R 500,000
DEBIT CREDIT
R 40,500
R 40,500
al asset) at year end: at spot rate
(310 000 + 10 000 + 40 500)
DEBIT CREDIT
R 10,750
R 10,750
set) at settlement date: spot rate
(7 500 000 + 500 000)
DEBIT CREDIT
R 250,000
R 250,000
DEBIT CREDIT
R 8,621,250
R 8,250,000
R 371,250
Details DR CR
Loan receivable R 7,500,000.00
Bank R 7,500,000.00
Interest receivable R 310,000.00
Interest income R 310,000.00
Interest receivable R 10,000.00
Forex gain R 10,000.00
Loan receivable R 500,000.00
Forex gain R 500,000.00
Interest receivable R -
Interest income R -
Interest receivable R 10,000.00
Forex gain R 10,000.00
Loan receivable R -
Forex gain R -
