MAY 2010 - Final (New Course) Group 1 - Paper 1

Mr. A bought a forward contract for three months of US $ 1,00,000 on 1stDecember at 1 US $=Rs. 47.10 when exchangerate was US $ 1=Rs. 47.02.On 31st December when he closed his books, exchange rate was US $ 1 =Rs. 47.15. On 31st January,he decided to sell the contract at Rs. 47.18 perdollar. Show how the profits from contract will be recognised in the books.