Question 23 (a) Sterling Ltd. purchased a plant for US $ 20,000 on 31st December, 2011 payable after 4 months. The company entered into a forward contract for 4 months @ 748.85 per dollar. On 31st December, 2011, the exchange rate was 7 47.50 per dollar. How will you recognize the profit or loss on forward contract in the books of Sterling Limited for the year ended 31st March, 2012. Exchange Rate per Goods purchased on 1.1.2011 of US $ 10,000 Exchange rate on 31.3.2011 Date of actual payment 7.7.2011 Ascertain the loss/gain for financial years 2010-11 and 2011-12, also give as per AS 11. 43