EnHakore Ltd has bought a consignment of goods from a UK supplier and has been invoiced...
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EnHakore Ltd has bought a consignment of goods from a UK supplier and has been invoiced for £60,000. EnHakore Ltd has assumed an average annual exchange rate of £1-GH¢2.9 in its budget. The invoice was received a few days later, when the exchange rate was £1= GH¢2.78. The company buys the £ (pounds) from its bankers. When payment was made to the supplier the exchange rate was £1=2.60. i. Analyze the transaction to determine the exchange loss or gain made Advice EnHakore Ltd appropriately. EnHakore Ltd has bought a consignment of goods from a UK supplier and has been invoiced for £60,000. EnHakore Ltd has assumed an average annual exchange rate of £1-GH¢2.9 in its budget. The invoice was received a few days later, when the exchange rate was £1= GH¢2.78. The company buys the £ (pounds) from its bankers. When payment was made to the supplier the exchange rate was £1=2.60. i. Analyze the transaction to determine the exchange loss or gain made Advice EnHakore Ltd appropriately.
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To analyze the transaction and determine the exchange loss or gain made by EnHakore Ltd we need to c... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,
Posted Date:
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