PART 2 Botwholesa Limited is a subsidiary of Botswana Wholesaler based in Gobabis Namibia. Its functional currency is the Botswana Pula (P). It made a credit sale to a Botswana customer on 1 October 2018 for N$ 100 000. This transaction was incorrectly recorded by Botwholesa Limited as a sale for P100 000. Botwholesa Limited received part payment on 30 November 2018 for N$50 000 and this again was incorrectly recorded as P 50 000 in its records

The following exchange rates applied during the financial year 1 October 2018 P1 = N$ 1.25 30 November 2018 P1 = N$1.20 31 December 2018 P1 = N$ 1.10

Required

(a) Prepare journal entries to show how the above transactions should be recorded in the books of Botwholesa Limited for the year ended 31 December 2018 (7 marks) (b) Calculate the foreign exchange gain or loss at 31 December 2018 for Botwholesa (6 marks)