24. On 1 January 2019, G ltd an Australian company , entered into a loan...
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24. On 1 January 2019, G ltd an Australian company , entered into a loan contract with a Y ltd, US based company, to borrow 300,000, G ltd received the money in the bank account IN Australian Dollar on same date. The loan is for 8 years and requires the payment of interest at the rate of 12% on 31 December each year. The exchange rate are as follow;
| Date | AUD | USD |
| 1 January 2019 | 1 | 0.84 |
| 31 December 2019 | 1 | 0.90 |
What id the general entry of interest for the loan transition required for G to Account for profits and loss arising due to foreign rate on 31 December 2019
A
|
|
| $ | $ |
| debit | FC loss | 24,000 |
|
| credit | cash |
| 24,00 |
B
|
|
| $ | $ |
| debit | Loan payable | 24,000 |
|
| credit | FC gain |
| 24,00 |
C
|
|
| $ | $ |
| debit | FC gain | 24,000 |
|
| credit | Loan payable |
| 24,00 |
D
|
|
| $ | $ |
| debit | FC loss | 24,000 |
|
| credit | Loan payable |
| 24,00 |
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