What is the answer on account of revaluation?

un realised loss USD90--------------------------

Option c. Unrealized loss $90

C. Unrealised Loss USD90. Since company X has not settled its liability the increase in the rate means an increase in the outstanding payments to the vendor by company X.

thus on5/06 oustanding amount =1.56 x1,500 =2,340

on30/06 oustanding amount =1.62 x1,500 =2,430 giving a difference of USD90

 

The answer is option c : unrealised loss $90 on account of revaluation on30th June.....and it will become realised only when the payment settled to this vendor for this invoice.....it means the net impact of loss or gain including this unrealised loss of $90 has to be accounted to realised gain or loss on the date when the payment settled... thanks for all the responses...

Though X company not settled the vendor until30th June It should be realized as a loss of USD90. But if there would be a gain this would not be immediately chargeable until and unless settled the vendor account balance.

Answer is B. On June30, there will be a loss of USD90.00