As-11

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2013 is it necessary to record foreign exchange fluctuation difference if payment for the entire purchase transaction is made in advance before the goods are actually recieved and recorded in accounts.

Ganeshbabu K

Ganeshbabu K (Expert)
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19 September 2013 Yes, mandatory,,
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otherwise how balance will show same amount in your books and supplier books

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Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2013 But if i record the purchase transaction at the amount which i have already paid in advance then am i violating AS-11? the AS-11 is silent about it please help!

Ganeshbabu K

Ganeshbabu K (Expert)
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19 September 2013 See suppose you have paid 100$ on march1st,,and in your books some amount will appear and it will be different from your account in your supplier books,,

say,, in your supplier books it shows advance received 100$ on 31.03.2013 to make it match with your books it is mandatory to restate balance standing in sundry debtors and creditors as on 31.03.2013
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it is also mandatory vide As11

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2013 For Eg:Mr.x Paid $100 as an advance to supplier as on 1st may2012 on which date dollar ex rate was Rs54 per $, but goods actually came to my place on 30th sept2012 on that date ex rate is Rs.58 per$ now should i record my purchase at RS.54 without any ex diff. or should i record it at Rs.58 with Ex. diff .

Please reply at the earliest!!!!!

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