Q2. ABC plc is a British company which has the BP as its functional currency. The...

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Q2. ABC plc is a British company which has the BP as its functional currency. The company has the following transactions in KD during the year to 31 December 2023 - the financial years is from 1 January-31 December; 1 Jan 2023- Inventory costing 300,000 KD purchased on credit from N Company. 1 April 2023- Equipment costing 1,200,000 KD purchased on credit from X and signed a note payable. 1 May 2023 Sold inventory to S company for 500,000 KD on account. 1 July 2023-Paid N 100,000 KD on account for the inventory bought on 1 Jan 1 Oct 2023- Paid X 750,000 KD for the equipment purchased on 1April. 1 Dec 2023 - received 300,000 KD from S for inventory sold on May. Exchange rates may be assumed as follows: 1 Jan 2023 1 KD=3.5 Euro pound pound 1 April 2023 - 1 KD = 3.25 Euro pound 1 May 2023 - 1 KD = 3.4 EEO AR 3.4 x 300 000 cash 3.8 x 300 000 = 1 July 2023 1 KD = 3. 75 Euro 1 Oct 2023 1 KD = 3.6 Euros 1 December-2023 1 KD = 3.8 31 December 2023 - 1 KD = 4 Euros A/P 100,000 3.5=350,000 Loss (25,000) A/P 100,000 x 3.75 = 375,000 entries for the transactions above ting date 31 December 2010 Cr Q2. ABC plc is a British company which has the BP as its functional currency. The company has the following transactions in KD during the year to 31 December 2023 - the financial years is from 1 January-31 December; 1 Jan 2023- Inventory costing 300,000 KD purchased on credit from N Company. 1 April 2023- Equipment costing 1,200,000 KD purchased on credit from X and signed a note payable. 1 May 2023 Sold inventory to S company for 500,000 KD on account. 1 July 2023-Paid N 100,000 KD on account for the inventory bought on 1 Jan 1 Oct 2023- Paid X 750,000 KD for the equipment purchased on 1April. 1 Dec 2023 - received 300,000 KD from S for inventory sold on May. Exchange rates may be assumed as follows: 1 Jan 2023 1 KD=3.5 Euro pound pound 1 April 2023 - 1 KD = 3.25 Euro pound 1 May 2023 - 1 KD = 3.4 EEO AR 3.4 x 300 000 cash 3.8 x 300 000 = 1 July 2023 1 KD = 3. 75 Euro 1 Oct 2023 1 KD = 3.6 Euros 1 December-2023 1 KD = 3.8 31 December 2023 - 1 KD = 4 Euros A/P 100,000 3.5=350,000 Loss (25,000) A/P 100,000 x 3.75 = 375,000 entries for the transactions above ting date 31 December 2010 Cr