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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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