Fr - ind as 21

Financial Reporting

Here below attached que For point of view of p ltd. As on 31/3/18 rate become 65 from 68 So its gain for p ltd ( creditor ) Right?? Then why should they write loss of re - translation in answer? Correct me if i m wrong. Que - RTP nov 2018

DRASHTI DHANESHA

CA Final

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09-Mar-22 14:02

667

Answers (5)

P Ltd is not a creditor. P Ltd has purchased and hence is a debtor. Since the exchange rate has increased, it is a loss

CA Suraj Lakhotia

Admin

09-Mar-22 16:49

Ok thq

Thread Starter

DRASHTI DHANESHA

CA Final

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10-Mar-22 07:12

Thread Starter

DRASHTI DHANESHA

Ok thq

But mera que yai tha ki as p ltd abh pay 65 karna hai instead of 68 toh 3 rs gain record hona chahiye na? Why should they write loss ?

Thread Starter

DRASHTI DHANESHA

CA Final

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10-Mar-22 07:43

It would be a gain. You are correct

CA Suraj Lakhotia

Admin

10-Mar-22 08:01

Thanks for confirmation ð???

Thread Starter

DRASHTI DHANESHA

CA Final

★ 1K+

10-Mar-22 11:40