Homework Answers
| Particulars | Debit($) | Credit($) |
| Kenyan
Debtor A/c Dr To Sales A/c (contract sales recorded) |
6,00,00,000.00 | 6,00,00,000.00 |
| Bank
A/c
Dr. To Kenyan Debtor A/c To Exchnahe Gain RealizedA/c (payment received exchange gain loss recorded) |
7,50,00,000.00 |
6,00,000,00 1,50,000,00 |
| At time of sell | ||
| Cent/$ | 25 | |
| 1500000000Cent = | 150000000/25 | |
| $6,00,000,00 | ||
| At time of payment | ||
| $/cent | $0.05 | |
| So, Cent/$ = | 1/0.05 | |
| 20 cent | ||
| So Dollar depreciated by 5 cent | ||
| Therefore, | ||
| 1.50 Billion Cent will pay | 1500000000/20 | |
| 7,50,00,000.00 | ||
| Difference of amount booked and amount received to be shown as Exchange Gain Realized | ||
| That is = | 7,50,000,00-6,00,000,00 | |
| $1,50,000,00 | ||
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