On 1 July 2022 Double Island Ltd enters into an agreement to borrow £2 million from Point plc (UK). Point plc sends the loan money to Double Island Ltd’s Australian bank account. The loan is for four years and requires the payment of interest at the rate of 8 per cent on 30 June each year. Double Island Ltd’s reporting date is 30 June. The relevant exchange rates are:

1 July 2022 A$1.00 = UK£0.48

30 June 2023 A$1.00 = UK£0.50

REQUIRED

Provide the necessary journal entries that would be made in the books of Double Island Ltd to account for the above transaction for the year ending 30 June 2023.