Custom

I hope, u r talking abut Exchange rate..

Let me tel u through an exmpl.

Suppose Accounting Year 2010-11, The Dollar exchange rate on 1-4-10 was Rs. 40 and on 31-3-11 is Rs. 45.

Average rate= (Exchange rate at the beginning of the financial year +  Exchange rate at the end of the financial year) / 2

= (40+45)/2 = Rs.42.50

Cloasing rate= Exchange rate at the end of the financial year 

                         =Rs. 45