This relates to accounting for Unbilled Revenue where transaction takes place in foreign currency (USD).
Scenario goes like this:
ABC Ltd. is a service provider having number of domestic and foreign clients. It does billing to Z Co. Ltd in USD while base currency for ABC continues to be INR.

As per Billing cycle, the bill to Z Co. shall be raised on 15th April 09 for work done for the period Jan'09 to Feb'09.
ABC wants to put entries for Unbilled Revenue on a monthly basis (Jan to Mar).
In this example billing for each month is $1000 (Jan to Mar) and for that of Apr is $500 (till 15th Apr). Also, the currency conversion rate is different at all month ends (as on 31st Jan Rs.45, 28th Feb Rs.47, 31st Mar Rs.46 and 15th Apr (Rs.50). Please help me with the accounting entries for the Unbilled Revenue, complying with the Indian Accounting Standards and business scenario.

Following is what our system is doing right now which seems to be bit dicey:

Accrual 31st Jan Unbilled AR Dr. $1000 Rs.45000 Conversion Rate - Rs.45
Revenue Cr. $1000 Rs.45000

Reversal 1st Feb Revenue Dr. $1000 Rs.45000
Unbilled AR Cr. $1000 Rs.45000


Accrual 28th Feb Unbilled AR Dr. $2000 Rs.94000 Conversion Rate - Rs.47
Revenue Cr. $2000 Rs.94000

Reversal 1st Mar Revenue Dr. $2000 Rs.94000
Unbilled AR Cr. $2000 Rs.94000


Accrual 31st Mar Unbilled AR Dr. $3000 Rs.1,38,000 Conversion Rate - Rs.46
Revenue Cr. $3000 Rs.1,38,000

Reversal 1st Apr Revenue Dr. $3000 Rs.1,38,000
Unbilled AR Cr. $3000 Rs.1,38,000

And Finally, the actual billing happens on 15th April. Nowhere in the above flow of transaction does Currency Exchange Gain/Loss appears which seems to be incorrect. Please guide with appropriate accounting of the above transaction.

Which chapters are very important & have weightage from exam point of view.
My attempt is : nov.09 Pcc ,
please tell about both Advanced accounts & company accounts.

Dear Sir/Madam,
Please clarify me - what is the maximum renumeration amount the partners can draw from a partnership firm?
Advance thks,
kind regards,
S.Babu.

The co.(like film co.) initially depsosit the amount in a person (production manager) bank account/given him cheque.

further he incur expenses & provide the actual original bill to the said co.

he has no proof of same.

the said person incurs expenses on some items & Bribe.

how we pass entry.

As these amount are neither his income nor his expenses.

like
may be passed

but not showing

1. Bank a/c dr. 50000(salary)+100000(for expneses)
To media co.

2. expenses dr. 50000
To bank 20000
To Bribe 40000

The co.(like film co.) initially depsosit the amount in a person (production manager) bank account/given him cheque.

further he incur expenses & provide the actual original bill to the said co.

he has no proof of same.

the said person incurs expenses on some items & Bribe.

how we pass entry.

As these amount are neither his income nor his expenses.

like
may be passed

but not showing

1. Bank a/c dr. 50000(salary)+100000(for expneses)
To media co.

2. expenses dr. 50000
To bank 20000
To Bribe 40000

Hi
the expression in part II " earnings in foreign exchange" means income earned during the financial year in foreign exchange whether received or not in that year? is that right? Please clarify. Similarly expenditure in foreign currency whether paid or not during the year.

Reqeust clarification.

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