Solution:
Date Account tides Debit (S in ruble) Credit (S in ruble)
and Explanation
Oct 1 Accounts receivable 96,600
Sales
( 210,000 ruble x $0.46) 96,600
Dec 31 Accounts receivable
( 50.49-50.46) x (210,000 ruble) 6,300
Foreign Exchange gain 6,300
Loss on forward contract 2079,21
Forward Contract
(50.52-50.51) x 210,000 ruble =2,100
2,100 x 0.9901= $2079.21 2079.21
Jan31 Accounts receivable (LC U) 4,200
Foreign exchange gain
(50.51-50.49) x 210,000 ruble 4200
Foreign currency 107,100
Accounts receivable
(596.600-56,300-54,200) 107,100
Cash 107,100
Foreign cuuency (LCU)
($0.51 x210.000 ruble) 107,100
