The following information relates to ABB plc, a UK based multinational.

i. On 11 January 2006, ABB Ltd bought goods from an American supplier for $900,000. The goods were recorded at the spot rate of 1=$1.60 and no further adjustments have been made. The balance due to the supplier was unpaid at 31st March 2006 when the exchange rate was 1= $1.64

ii. Trade debtors are translated into sterling automatically by the sales ledger at the exchange rate ruling on the date of the transaction. At 31st March 2006, the total value of American trade debtors was $456,000, all of which arose in the last two months of the year when the average exchange rate was 1= $1.61. No adjustment has been made to this amount as at 31st March 2006.

iii. ABB borrowed $4m on 1st April 2005. This was correctly recorded at the spot rate on that date of 1= $1.58. No adjustment has been made to the loan balance since 1st April 2005 although all interest has been correctly recorded.

Note: ABB includes foreign gains and losses in administrative expenses.

ABB prepares its accounts to 31st March.

Required:

Prepare journal entries to record any necessary adjustment relating