Question

ABC Ltd purchased an asset of Rs.70 crore. As on date of purchase, 1 USD was equivalent to Rs.70. the company paid after a year when the exchange rate changed to Rs.72.5 for a dollar. What would be the effect of exchange difference? 

A Profit of Rs.2 crore
B Loss of Rs.2 crore
C Profit of Rs.2.5 crore
D Loss of Rs.2.5 crore
E None of the above
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