07 November 2012
the rate to be used should be Rs.52/- and after that the difference (Rs.54-52 i.e. Rs.2/-) should be debited to profit & Loss account and credited to party
suppose i received 3 invoices in the month of april for three different dates ( let 3, 8, 10 april & exchange rate for these dates are 52 , 53, 51) but i forgot to booked all on the said date , & i booked all the 3 invoices on 30.04.2012 but exchange rate was taken by me was same of invoice date i.e 52 , 53, 54 for each invoice ) is this correct or shall i take the exchange rate ( 54/- on 30.04.12 )
( beacause we maintain register on date wise so we can not pass the entry on same date ( on which invoice rcvd) but on month end date we can pass, because entries serial no. remain same and in it's continuous proportional )
07 November 2012
DEAR SIR , 1.THE DATE 21.04.2012 IS COMING UNDER F.Y.2011-12 BUT YOU HAVE RECEIVED THE INVOICE ON 30.04.2012. SO THIS IS COMING UNDER F.Y.2012-13.
2. I THINK AS PER CONVENTION OF PRUDENCE IT IS GOOD TO BOOK AT RS 54/- INSTEAD OF RS 52/- .ANYWAYS WHEN YOU ARE MAKING THE FINAL PAYMENT YOU WILL HAVE TO PAY AT THAT EXCHANGE RATE WHICH IS THERE ON PAYMENT DATE .
3. SO WHAT I SUGGEST IS THAT BOOK IT IN YOUR BOOKS OF A/C UNDER EXCHANGE RATE OF RS 54 ON 30.04.2012 AND BOOK THE DIFFERENCE IF ANY ON PAYMENT DATE OF INVOICE IF EXCHANGE RATE GOES HIGHER OR LOWER THAN RS 54.
The well known practice is that conversion rate is taken of the date of invoicing. On 30.4.2012 you said rate was Rs. 54/- so it should be @ 54.00. Accounting Standard or norms also say thus. Further FLUCTUATION OF CURRENCY account is also associated with such accounting procedures.
For example and demonstration please contact at 'contact@vkbajaj.co.in
@Mr Sethia,
Please revisit your first answer at 52 and balance 2 afterwards. Please improve your answer as self efforts are always rewarding.
I request all experts to keep this query OPEN and not as RESOLVED till Mr Negi is satisfied. THANKS
but i booked all the invoice on 30.04.2012 and rate suppose ( 54/- ) now my question is i received all the bill on time but i forgot to booked all the bill on time & i booked on 30.04.2012 so what will be the rate
CAclubindia
