a) On 1 June 2022 Global Ltd purchased goods from a foreign country for Z\$32,400....
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a) On 1 June 2022 Global Ltd purchased goods from a foreign country for Z\$32,400. On 1 July 2022 the goods were paid in full. The relevant exchange rates were as follows: 1 June 2022$1=Z$10.27 1 July 2022$1=Z$9.94 REQUIRED: Estimate the exchange differences to be recorded in profit and loss according to IAS21 The Effect of Changes in Foreign Exchange Rates. (5 marks) b) Coldfield Tractors Limited's (Coldfield) business is the purchase and selling of tractors for farming. It purchase's many tractors from the United Kingdom. On the 10 July 2022 , Coldfield purchased five tractors costing 20,000 each. The spot exchange rate on that date was that 1 sterling equals 1.20 euro. Coldfield's functional currency is the Euro. REQUIRED: List the journal entry required to record the above transaction in the financial statements of Coldfield Tractors Limited (Show all workings)
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