Can we net-off foreign transaction by Journal entry ?
This query is : Resolved
Amit Bhatkar
(Querist)
15 March 2009
Hi All
Can we net-off the foreign transaction ?
For example : Suppose we are liable to pay dividend to one of our group company X in Europe , and at the same time X compnay is liable to pay professional fees to our company in India
If the outcome of both the transaction is same say Euro 10,000. Could we pass the journal entry by debiting divend payable and crediting professional fees receivable a/c ?
Please help me.
Amit
Can we net-off the foreign transaction ?
For example : Suppose we are liable to pay dividend to one of our group company X in Europe , and at the same time X compnay is liable to pay professional fees to our company in India
If the outcome of both the transaction is same say Euro 10,000. Could we pass the journal entry by debiting divend payable and crediting professional fees receivable a/c ?
Please help me.
Amit
15 March 2009
no
Amit Bhatkar
(Querist)
15 March 2009
Hi,
Thanks afor the reply.
But does this bcos of group party transaction or nettig-off is not at all allowable with other companies also?
What is the situation for domestic party transaction ?
Thanks
Thanks afor the reply.
But does this bcos of group party transaction or nettig-off is not at all allowable with other companies also?
What is the situation for domestic party transaction ?
Thanks
15 March 2009
according to companies act dividend should be paid in cash or by a warrant or cheque.
so u need to show the journal entry for payment of dividend.
so u need to show the journal entry for payment of dividend.
15 March 2009
Dividen payable to share holder can't be set off. You have to pass the seprate entries
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