Where to show Loss or Profit in the (Profit & Loss Account ) or in the (trading Account)................................
Where to show Loss or Profit in the (Profit & Loss Account ) or in the (trading Account)................................
Sunil
(Trader)
(2611 Points)
Replied 02 October 2009
Depends on what item the exchange difference is there.
If it is on sales it will increase or decrease your sales.
if it is on purchase or on expensesit will increase or decrease the expense or purchase.
Say it is on capital account like a deferred payment for machinery, it will adjust or reduce the cost of the capital equipment or machinery.
CA AYUSH AGRAWAL
(Kolkata-Pune-Mumbai)
(26986 Points)
Replied 02 October 2009
IT SHOULD BE SHOWN IN INCOMe FROM EXTRAordinary items, below the p\l accout. or can be shown in that accont also.
Bharat Khurana
(Student)
(153 Points)
Replied 26 December 2009
Exchange difference should be shown separately as extraordinary item.
V P Narasimhan
(Accounts Manager)
(791 Points)
Replied 03 March 2010
Normally a single account can be opened as ExchangeLoss/Gain - In this neither plus(gain) or minus(loss) can be accounted in the same heading & willbe shown in the Trial Balance at the end of the year the real fact ie., Gain/Loss as the case may be depends upon the end balance.
CAclubindia
