As-11

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CA Abhay Jain

Chartered Accountant

29 Points Joined July 2010

Almaz Impex Ltd. an Indian Company took a foreign currency loan of US $ 5,00,000 @ 10% p.a. on 1-1-2009. Interest is payable half - yearly with an instalment for principal of US $ 50000. The company closes books of accounts as on 31st March every year. Exchange Rates are:

01/01/2009 - 42.25

31/03/2009 - 42.50

30/06/2009 - 42.90

31/12/2009 - 43.90

31/03/2010 - 43.50

what will the exchange fluctuation loss/gain for the F. Y. ended on 31/03/09 & 31/03/10 respectively.

ANS : Loss Rs. 1,25,000 (31/03/2009) & Loss Rs. 4,95,000 (31/03/2010)

How this solution is arrived, please please help me in this fast i have my exam in coming nov.

Replies (4)

CA Riswa Parekh

Practicing

1591 Points Joined October 2008

1.500000*(42.25-42.5)=(125000)

2. loan paid half yearly it means 30 sep and 31 march
not
june and december

so take the avg of 42.90 and 43.90 then deduct 42.50 from this and multiply by 50000 = 45000

then 50000 * (43.50 - 42.50)= 50000
and
4 lac * (43.50 - 42.50)=400000

so 400000+50000+45000=(495000)