On 1 February 2023, Galah Ltd, an Australian company that has A\$ as its functional currency, enters a forward exchange contract to buy \(£ 300000\) in six months' time at 31 July 2023. The contract is entered into for speculative purposes as the management of Galah Ltd believe that future economic conditions will lead to an appreciation in the \(£\) relative to the \(\mathbf{A} \$\). Relevant exchange rates are as follows.

Assume a discount rate of 0% for fair value calculations.

Required 

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

2. Assuming that the forward contract entered is to sell £300  000, prepare the necessary entries for Galah Ltd up until and including 31 July 2023. The other features of the contract stay the same.

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Spot rate Forward rate (for 31/07/2023) 1 Feb. 2023 date of contract inception 1=A$1.68 1=A$1.80 30 Jun. 2023 end of reporting period 1=A$1.72 1=A$1.82 31 Jul. 2023 date of contract settlement 1=A$1.65 1=A$1.65