IAS 21 Effects of foreign exchange rates

Trucking Solutions Ltd (Trucking-Solutions) is a company listed in the Zimbabwe Stock exchange and conducts its business from its head office in Harare. The company purchased its inventory from Part-Quip Pty South Africa at a cost of ZAR 2 000 000 on 30 June 2017 when the exchange rate was $1 = ZAR 1. According to the contract, the supplier will be paid on 31 December 2019. There was no forward cover taken out for the transaction and Trucking-Solutions Ltd uses the perpetual system to account for all its inventories. The following exchange rates are applicable. 31 December 2017 ZWL $1 = ZAR 0.8 31 December 2018 ZWL $1 = ZAR 1 31 December 2019 ZWL $1 = ZAR 1.25 75% of inventory was sold in year 2017 while 25% was sold in year 2018. It is the policy of Trucking-Solutions to price all its inventory at cost plus 50% mark-up. Required Prepare the relevant journals to account for the above transactions from years 2017 to 2019. 30/06/17 Inventory $2 000 000 DR Part-Quip Pty $2 000 000 CR Being the purchase of inventory at $1:ZAR1 31/12/17 Forex difference(loss) $500 000 DR Part-Quip Pty $500 000 CR 31/12/17 Bank $2 250 000 DR Sales $2 250 000 CR 31/12/18 Part-Quip Pty $500 000 DR Forex difference(gain) $ 500 000 CR Bank $750 000 DR Sales $750 000 CR 31/12/19 Part-Quip Pty $2 000 000 DR Forex difference(gain)$ 400 000 CR Bank $1 600 000 CR How correct am I?