Kangroo Limited $($KL$),$ a Pakistan based company, is preparing its financial statements for the year ended $31$ December $2017,$ Following transactions were carried out during the year.

Foreign currency transactions:

$1.$ KL purchased an investment property in United states for USD $2\mathrm{.}6$ million. $10\%$ advance payment was made on $1$ M$\backslash$ay $2017$ and $70\%$ payment was made on $1$ July $2017$ on transfer of title and possession of the property. The remaining amount was paid on $1$ August $2017.$

$2.$ On $1$ September $2017,$ KL rented out this property at annual rent of USD $0\mathrm{.}24$ million for one year and received full amount in advance on the same date.

$3.$ KL uses fair value model for its investment property. ON $31$ December $2017,$ an independent value determined that fair value of the property was USD $2\mathrm{.}5$ million.

Following that spot exchange rates are available:

Date $1-$May$-20171-$July$-20171-$Aug$-20171-$Sep$-201731-$Dec$-2017$

USD $1$ Rs$.100$ Rs$.105$ Rs$.108$ Rs$.110$ Rs$.116$

Required:

a$)$ Prepare balance sheet and profit and loss Extracts for the year ended $31$ December $2017.$

b$)$ Prepare Journal entries for the ended $31$ December $2017.$