hii...
suppose a foreign branch had plant amounting to $120000(excluding depreciation) at the end of the year....and the rate of depreciation is 10% p.a......now trial balance has to be prepared after incorporating the adjustment of depreciation.........the rate of depreciation was rs 38 to one $ when the plant was purchased..........and the opening...closing and average rate are rs 39, 41 and 40 respectively.....now...in one of the solutions the rate of conversion of plant and depreciation in trial balance has been taken to be 41 i.e the closing rate....and in the other solution...its given as rs 38 i.e the rate when it was actually purchased.....
sum1 please explain to me....as to which is the correct treatment and why.....
CAclubindia
