Foreign exchange/ transactions

(a) Jasper is an entity whose functional currency is the dollar ($) and has an annual reporting date of 31 December. On 1 July 20X3, Jasper purchased an item of plant and equipment on credit for Dn400,000. On 1 November 20X3, Jasper made a payment of Dn180,000 to the supplier. The balance of the invoice remains outstanding. Jasper has a policy of applying historical cost accounting and depreciating plant and equipment at the rate of 20% per annum. The item of plant and equipment is not expected to have any residual value at the end of its useful life. Relevant exchange rates are as follows: Date Dn 1 July 20X3 10.0 1 November 20X3 7.2 1 December 20X3 9.0 31 December 20X3 8.0 Required Determine the exchange gain/loss and provide extract of the Profit or loss account and the Statement of Financial Position for year ending 31 December 20X3 illustrating the impact of the above transactions. (hint. Include depreciation)