QUESTION 4 (15 marks)

SELM Pty Ltd, whose year ends on 31 March, purchased some good from SSM Pty Ltd on 31 December. The invoice value is P150,000 and is due for settlement in equal installments on 29 February and 30 April. The exchange rate at those dates are as follows;

pula/rand

31 December 1.50

29 February 1.70

31 March 1.80

30 April 1.75

Required: Show the journal entries to record that transaction (15 marks)