Page 12 - Finac 1 - Topic 2 - 1. The Effects of Changes In Foreign Exchange Rates
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THE EFFECTS OF CHANGES IN FOREIGN EXCHANGE RATES
Example - Translation of foreign currencies
On 30 June 20.10, a South African company sold goods to an
American import company for $100 000. Payment was made
on 30 September 20.10. The year-end of the South African
company is 31 December.
Applicable exchange rates were as follows:
30 June 20.10 $1 = R6,80
30 September 20.10 $1 = R6,75
31 December 20.10 $1 = R6,70
REQUIRED
Provide all the relevant journal entries in the records of the
South African company for the year ended 31 December
20.10.
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