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Sir this question branch inward average rate or opening rate
Accountancy
Sir this question branch inward average rate or opening rate Video Details ------------- P1 - Advanced Accounting - Without AS Accounting for Branches Including Foreign Branches #38. Illustration 13 - Part 3
Answers (5)
Best Answer
It is an integral operation, so we should classify it as Monetary or Non Monetary Item first. Carriage Inward is Non Monetary Now, we can use the Actual Value in INR or an appropriate rate, if the former is not available Here, we are not given the actual Rupee value of carriage inwards, so we can use an appropriate rate, which in this case would be Average Exchange Rate
Vishnu Muraleedharan
It is an integral operation, so we should classify it as Monetary or Non Monetary Item first. Carriage Inward is Non Monetary Now, we can use the Actual Value in INR or an appropriate rate, if the former is not available Here, we are not given the actual Rupee value of carriage inwards, so we can use an appropriate rate, which in this case would be Average Exchange Rate
There is no monetary or non-monetary classification for expenses. Use the general rule which we apply for P&L items.
