A long-term loan was obtained from Z Ltd 20,00,000 which was recorded at $ 1 = 36.20,
the rate on the date of the transaction. The exchange rate on the Balance Sheet date was $
1 = 37.40 . The loss due to exchange difference is _____.
Answers
Answer:
about 1000 rs hope it is helpful for you
Answer:
Concept:
One of a company's financial accounts, an income statement or profit, and loss account, lists the company's revenues and costs for a specific time period. It describes the process through which revenues are converted into net income or net profit.
Explanation:
Given:
A long-term loan was obtained from Z Ltd 20,00,000 which was recorded at $ 1 = 36.20
the rate on the date of the transaction. The exchange rate on the Balance Sheet date was $ 1 = 37.40
Find:
The loss due to exchange difference
Solution:
Long time depth obtained is
=20,00,000
Exchange rate on long term depth obtained
= $36.20
Amount obtained
= 20,00,000 / 36.20
= $55,248.6188
Exchange rate on balance sheet date
= $37.40
Amount of debt on balance sheet date
= 20,00,000 / 37.40
= $53,475.9358
Loss due to exchange difference
= $55,248.6188- $53,475.9358
= $1772.683
That is 1772683 * 37.4
= 66,298.34
Loss due to exchange difference
= 66,298.34
The loss due to exchange difference is 66,298.34
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