Ankur (na) (252 Points)
24 June 2013Dear Friends,
I am facing a problem. Please help me to solve it.
Suppose an export of US$ 5000 is made from India and Invoice is made for it at US$5000. Now i want to ask when i want to pass an entry in books in respect of such export sale at what rate of exchange should i convert these US$ 5000 into Rupees for bringing it into books????
How to calculate fluctuation in exchange rate???
Kindly help to solve the above query.
Z
( )
(2960 Points)
Replied 25 June 2013
You will record $5000 at the rate which was prevailing on date of invoice say 50/$
Drs would be 5000 X 50
when you receive the payment or if you are closing your books then exchange fluctuation should be considered
Suppose the rate is 55 on date of payment
Bank 5000 X 55
TO drs 5000 X 50
To exchange diff(P&L) 5000 X 5
if you are closing the books and have not recevied the payment
Drs 5000 X (55-50)
to exchange difference 5000 X 5
all the relevant info is in AS-11
https://www.mca.gov.in/Ministry/notification/pdf/AS_11.pdf
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