Question

(b) How are the figures of the trial balance of foreign
branch converted by the Head Office ? Describe
with imaginary figures.​

Answer 1

Answer:

When the rate of foreign exchange between the two countries is fairly stable, the figures contained in the foreign Branch Trial Balance are converted at a fixed rate i.e. official rate with the exception of (a) Remittances from Branch which are converted at the actual rates at which the remittances are made