Question

On May 15th 20X0 Unity Pvt. Ltd. entered into a contract with Kronika LLC. to ship them a specialized machinery for 5,000 USD. Unity shipped the machinery on 23rd June but by the end of its financial year i.e. 30th June 20X0, Unity did not received any amount due from Kronika.
However on 20th August 20X0 Unity Ltd. received an amount of 3,500 USD in its foreign currency bank account along with a confirmation email from Kronika about the transfer. On January 1st 20X1 Unity shipped another machinery for 7,000 USD and entered into a contract for 4,500 USD to provide technical services to Kronika until 30th June 20X2. On March 13th 20X1 Unity received another 5,500 USD and by the end of its financial year 20X2 Unity still had to receive the remaining amount from Kronika. Unity provided technical services to Kronika evenly throughout the contracted period and decided to account for service revenue and the corresponding receivables at the year-end on the average rate of exchange for foreign currency.
Unity’s presentation and functional currency is PKR and the exchange rates on the effective dates were as follows.

Date   PKR   USD
May 15th 20X0   102.68   1
June 23rd 20X0   105.87   1
June 30th 20X0   112.98   1
August 20th 20X0   105.32   1
January 1st 20X1   108.75   1
March 13th 20X1   127.56   1
June 30th 20X1   129.00   1
Avg. for the financial year ended 30th June 20X1   117.66   1
June 30th 20X2   152.55   1
Avg. for the financial year ended June 30th 20X2   135.10   1
Required:
1.   Pass all the necessary journal entries in the books of Unity Pvt. Ltd. to record the effects of the given transactions for the years 20X0-20X2.   
2.   Provide the extracts from the statements of comprehensive income and the statements of financial position along with relevant notes to show the effects of the given transactions for the years 20X0-20X2 for Unity Pvt. Ltd.

Answer 1

Journal entries in the books of Unity Pvt. Ltd. to record the effects of the given transactions for the years 20X0-20X2.   

Date	General Ledger	Debit	Credit
23/6/10	Kronika LLC ----debit	529,350
	To distrubution accounting		529,350
30/6/10	Kronika LLC ----debit.	35,550
	Gain on accounting		35,550
20/8/10	Bank accounting---Dr	368,620
	loss accounting---Dr	26,810
	To Kronika LLC		395,430
1/1/2011	Kronika LLC ----Dr.	823,620
	To selling accounting		823,620
1/1/2011	Kronika LLC ----Dr.	529,470
	To Deferred revenue accounting		529,470
13/3/2011	Bank accounting---Dr	701,580
	To Forex gain accounting		21,870
	To Kronika LLC		679,710
30/6/2011	Deferred revenue accounting---Dr	176,490
	To Revenue accounting		176,490
30/6/11	Kronika LLC ----Dr.	124,650
	To Forex gain on restatement A/c		124,650
30/6/12	Deferred revenue A/c---Dr	352,980
	To Revenue A/c		352,980
30/6/11	Kronika LLC ----Dr.	176,625
	To Forex gain on restatement A/c

b)Extracts from the statements of comprehensive income and the statements of financial position along with relevant notes to show the effects of the given transactions for the years 20X0-20X2 for Unity Pvt. Ltd

Income / Expenses	2010	2011	2012
Revenue	529,350	1,000,110	352,980
Other income
Forex gain	35,550	119,710	176,625

Any doubt comment below i will explain or resolve until you got....
PLEASE.....UPVOTE....ITS REALLY HELPS ME....THANK YOU....SOOO MUCH....