(Answered) Question - on 1 april 2017 a ltd an australian company sold

Accounting

Question - On 1 April 2017 A Ltd, an Australian company, sold a container of clothes on credit to a retailer B based in Hong Kong for HK$450 000. A Ltd purchased the container for clothes for A$200 000. The retailer B in Hong Kong will pay A Ltd on 20th July 2017.

A Ltd's functional currency is Australian dollar and the company's financial year end is 30th June. Exchange rates are given below:

1 April 2017 A$1.00 = HK$5.85

30 June 2017 A$1.00 = HK$5.80

20 July 2017 A$1.00 = HK$5.95

Required: Prepare journal entries to record the transaction on the above dates.

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