On 30 September 2021, Hayes bought parts from a French supplier for 200,000 Euros. Hayes paid for the parts on 13 February 2022. The relevant exchange rates were as follows:
30 September 2021 1.10 Euros : £1
31 January 2022 1.11 Euros : £1
13 February 2022 1.12 Euros : £1
Required:
Explain and justify how Hayes would account for this transaction, preparing calculations where appropriate and showing the presentation requirements as at 31 January 2022.
