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Accounting Entry for Sales & Purchase in foreign currency

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(Querist)
20 November 2023 Sir/Madam

I have one query regarding accounting entry of Sales Bill and Purchase Book. Company maintains books of account in multiple currency i.e INR, USD, Euro etc.

Company charged IGST tax on Sales to Foreign Customer and this IGST not to be paid by Customer because company has to pay IGST Tax. Company passes Journal entry for removing/adjust Forex gain or loss by debiting in INR currency and crediting Foreign Currency!!!

My question is that can it is correct accounting entry debiting in INR and Crediting in Foreign currency?? After passing above entry Forex gain or loss adjusted in Customer Account. thanks
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Aashok Kumar Sharma online

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Aashok Kumar Sharma online (Expert)
20 January 2024 I think taxes paid should be accounted in RATES AND TAXES separate from the Forex gain/ Loss Account to have better visibility in books
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