07 September 2009
The client is paying full advance payment under purchase order for purchasing a machines from foreign supplier.
The foreign supplier manufactures and send machines to Buyer after 60 days.
The contracts Value at CIF - U$100000
Full payment is being made to supplier as advance.
At what cost, machines to be capitalised in case Exchange Rate - Rs.40 at PO Date / Advance Pyt Dt. Exchange Rate - Rs.41 at Machine Supply at Foregin Port Exchange rate - Rs.40.50 at Bill of Entry date Exchange Rate - Rs.40.75 on Machines receipt at Factory Gate.
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