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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