Accounting for foreign transaction

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Pratyush Parashar (Querist)
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28 August 2012 How to pass the journal entry in Tally for the following transactions:-
Date- 01/05/2012 An Indian company raise a proforma invoice to a foreign client amounting EURO 1,000/-.
Date-05/05/2012 Foreign client remit Euro 1,000/-, in the FIRC, rate for Euro is mentioned EURO 1=INR 65.
Date- 02/06/2012 Indian company raise a Final invoice to the same client for Euro 2,000/- , and gets the payment on 06/06/2012. In FIRC rate for Euro is Mentioned as i)1 EURO=INR 70, ii)1 EURO=INR 60.

Vineet

Vineet (Expert)
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29 August 2012 I think there would be no etnry for proforma invoice and payment received against proforma invoice should treated as advance from customer.

advance from customer ac debit to 65000
to debtor ac 65000

at the time of raising an invoice

debtor account debit to 140000
saleas equipment account 140000
suppose at the time of raising an invoice euro rate is 70

now we will received the payment and euro rate is 70

bank account debit 700000
advanced from customer ac debit 65000
forex gain/loss account debit 5000
to debtor account 140000

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