entity records transactions in US dollars a sale resulted in

entity records transactions in US dollars. a sale resulted in receivable denominated in yen, and purchase of goods resulted in payable denominated in euros. a foregin exchange gain from the receivable and exchange loss from the payable. did the number of foreign currency unit exchange for a dollar increase or decrease between contract settlement?

yen: increase or decrease?
euro: increase or decrease?

Solution

For exchange to result in gain home currency(USD) must be stronger and foreign currency (Yen) must be weak. Thus in case of amount receivable value of Yen as compared to USD decreased hence more units of Yen were exchanged.

For exchange to result in gain home currency(Euro) must be stronger and foreign currency (USD) must be weak. Thus in case of payable value of USD as compared to Euro decreased and hence more units of USD were exchanged.