A Kenyan businessman bought goods from Japan worth 2, 950 000 Japanese yen. On arrival in Kenya custom duty of 20% was charged on the value of the goods. If the exchange rates were as follows:

Question

A Kenyan businessman bought goods from Japan worth 2, 950 000 Japanese yen. On arrival in Kenya custom duty of 20% was charged on the value of the goods. If the exchange rates were as follows:

1 US dollar = 118 Japanese Yen

1 US dollar = 76 Kenya shillings
Calculate the duty paid shillings
Yen to US Dollar
1 US Dollar = $25000

= 76 × 25000 = Kshs 1900000
20 %× 1900000= KshS 380000

is this correct?

Answer 1

To calculate the duty paid in Kenyan shillings, we need to convert the value of the goods from Japanese yen to Kenyan shillings and then calculate the 20% duty on that amount.

First, let's convert the value of the goods in Japanese yen to US dollars:

2,950,000 Japanese yen / 118 yen/USD = 25,000 USD

Next, let's convert the US dollars to Kenyan shillings:

25,000 USD * 76 KES/USD = 1,900,000 KES

So, the goods are worth 1,900,000 Kenyan shillings.

Finally, let's calculate the 20% duty on this amount:

20% * 1,900,000 KES = 380,000 KES

Therefore, the correct duty paid in Kenyan shillings is 380,000 KES.