FOREGN EXCHANGE EXCHAGE SOLUTIONS

QUESTION 1

DATE DETAILS DEBIT ® CREDIT ®

1/7/2018 Foreign debtor 174 000
Sales 174 000
($15 000 * R11.60)

Cost of sales 150 000

Inventory 150 000

30/9/2018 Foreign debtor 1 050

Foreign exchange gain 1 050
($15 000 * R11.67) – ($15 000 * R11.60)

30/11/2018 Bank ($15 000 * R11.52) 172 800

Foreign exchange loss 2 250
Foreign debtor (174 000 + 1 050) 175 050

QUESTION 5

DATE DETAILS DEBIT ( R ) CREDIT ( R )

7/6/2018 Foreign debtor 125 000
Sales ($100 000/$0.80) 125 000

Cost of sales 95 000

Inventory 95 000

30/6/2018 Foreign debtor 8 333

foreign exchange gain 8 333
(R133 333 – R125 000)

31/7/2018 Bank ($100 000/R1.20) 83 333

Foreign exchange loss 50 000
Foreign debtor (R125 000 + R8 333) 133 333
 QUESTION 3

DATE DETAILS DR (R) CR (R)

30/08/2018 Inventory 114 800
Foreign creditor ($8 000 * R14.35) 114 800

30/11/2018 Foreign creditor 114 800

Foreign exchange gain 1 040
Bank 113 760

Payment date: 30 Aug 2019

DATE DETAILS DR (R) CR (R)

30/08/2018 Inventory 114 800
Foreign creditor 114 800

31/12/2018 Foreign exchange loss 1 040

Foreign creditor 1 040
114 800 – 115 840 (8000*R14.48)

30/08/2019 Foreign creditor (114 800 + 1 040) 115 840

Foreign exchange loss 2 960
Bank (8 000 * R14.85) 118 800