Mara Ltd is an Australian company. The functional currency of Mara Ltd is A$. It has reporting periods ending on 31 December and 30 June. During the year ended 30 June 2024, Mara Ltd entered into various foreign currency transactions in Euros (€) as follows.

(a) On 15 November 2023, Mara Ltd ordered plant costing €400 000 from an Italian company under a FOB destination contract. On 30 November 2023, the plant was delivered. On 25 January 2024, the invoice for the plant purchase was paid.

(b) On 30 November 2023, Mara Ltd sold inventories to a German customer for the agreed price of €250 000. The inventories had a cost of $175 000. On 31 January 2024, the sales invoice was paid by the customer.

(c) On 1 July 2023, Mara Ltd made an interest-free loan to a related French company, Attitude Cavaliere, for €500 000. The term of the loan is set at 5 years at which time Attitude Cavaliere will be required to arrange its debt finances independently.

Required 

In accordance with AASB 121/IAS 21, prepare the entries of Mara Ltd for the half year to 31 December 2023 and the full year to 30 June 2024.

Transcribed Image Text:

Applicable exchange rates are as follows. 1 Jul. 2023 15 Nov. 2023 30 Nov. 2023 31 Dec. 2023 25 Jan. 2024 31 Jan. 2024 30 Jun. 2024 1=A$1.27 1=A$1.20 1=A$1.30 1=A$1.25 1=A$1.23 1=A$1.21 1=A$1.35