On 1 January 2023, Bunji Ltd, an Australian company that has A$ as its functional currency, enters into a forward exchange contract to sell €300 000 on 31 August 2023. The forward contract is designated as a hedge for a sales transaction of €300 000 that Bunji Ltd expects to have with a German customer on 31 August 2023. The sales transaction is highly probable based on past experience. Assume a discount rate of 0% for fair value calculations. Relevant exchange rates are as follows.

Required 

Prepare the necessary entries for Bunji Ltd up until and including 31 August 2023 in accordance with AASB 121/IAS 21.

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Spot rate 1=A$1.27 Forward rate (for 31/8/2023) 1=A$1.32 1 Jan. 2023 30 Jun. 2023 1=A$1.30 31 Aug. 2023 1=A$1.36 1=A$1.35 1=A$1.36