Hi, A private ltd.co. . has received share application money to the tune of $ 3 million from its overseas investors. Now the private co. wants to refund back the said money. When the money was received the FX rate was 53 but now it is 48. How the difference of Rs. 3 be treated, should it be through PL or directly in Equity.
It is through P&L
S it is through profit and loss a/c
Not directly to equity at all. It should must be through Profit & Loss Account.
I think it must be accounted in the profit & loss account as income from exchange difference.
According to me it should be treated as Capital Loss, it cannot be a revenue loss.
Please comment.
| Originally posted by : SHIJO PAUL | ||
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I think it must be accounted in the profit & loss merchant account as income from exchange difference. |
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Not directly to equity at all. It should must be through Profit & Loss Account.
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