Sunshine Company Limited imported raw materials worth US Dollars 9,000 on 25th February 2012, when the exchange
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Sunshine Company Limited imported raw materials worth US Dollars 9,000 on 25th February 2012, when the exchange rate was ₹44 per US Dollar. the transaction was recorded in the books at the above mentioned rate. the payment for the transaction was made on 10th April, 2012, when the exchange rate was ₹48 per US Dollar. At the year end 31st March, 2012, the rate of exchange was ₹49 per US Dollar. The Chief Accountant of the Company passed an entry on 31st March, 2012 adjusting the cost of raw material consumed for the difference between ~ 48 and ₹44 per US Dollar. Discuss whether this treatment is justified as per the priovisions of AS-11.
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Related Book For
Corporate Accounting As Per The Companies Act 2013 Including Rules 2014 And 2015
ISBN: 9789352605569
2nd Edition
Authors: M Hanif, A Mukherjee
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