alleryStart learning →Goods bought for USD 10,000 at Rs 80 remain unpaid; year-end rate is Rs 83. Effect?
AP&L gain Rs 30,000
BP&L loss Rs 30,000
COCI loss Rs 30,000
DNo effect until paid
Answer & Solution
Correct answer: B. P&L loss Rs 30,000
The payable rises from Rs 8,00,000 to Rs 8,30,000 at the closing rate, and the Rs 30,000 increase is an exchange loss in profit or loss.
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