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transactions was indicated, and the same rule could be extended and applied to all the exchange transactions of
the colony, viz:- "that any profit on a year's working "should be carried to Revenue" and that, on the other
hand, any loss, if a loss be made on all the transactions
of the year, should be charged to Expenditure.
7.
The above method of dealing with
exchange transactions could easily be carried out in the
following manner:-
The "Exchange Account" to be recorded in the Treasurers
cash accounts "below the line".
To this account should be carried every quarter the
gains or losses by exchange.
At the end of each year
the account to be closed, any net gain or net loss being
dealt with as detailed in the preceding paragraph.
8. As an alternative method, if thought
preferable, the net gair in any year, instead of being
carried to Revenue might be adjusted by deduction from
Expenditure,
I have &C.
(3)