How to record accounting entries for the following, Fund operates in EURO anduses close of business exchange rates:
March 7th – Purchase of 5000 imperial equity shares at a mid-day market price of 4.80GBP. The trade will settle on the 9 March. The close of business market price is 4.85GBP.Exchange rate is 1 EUR = 0.86 GBP
March 8 – imperial equity shares (COB) market price was 5.01 GBP – exchange rate is 1 EURO = 0.85 GBP
March 9 – imperial (COB) market price was 4.95 GBP – exchange rate is 1 EURO = 0.83GBP. The trade settles today
March 10 – the fund sold their holding in imperial equity shares at a price of 5.33 GBP. Exchange rate 1 EURO = 0.84 GBP. Trade date and settlement date for this sell trade is 10 March.