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Chauhan Nayan (Querist)
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01 December 2014 Xyz imported goods worth USD 500000 From US based company on 31st october 2010 when 1USD=46.75. It was agreed to the creditor in four equal installment as follow: date of payment exchange rate 30november2010=45.85 31december2010=46.25 31january2011 =47.35 28february2011 =46.85 the company closed books on 31 december. Calculate the exchange differance and pass journal entries and also prepare foreign currency payable a/c.

Amol S Joglekar

Amol S Joglekar (Expert)
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01 December 2014 30/11/2010 Gain INR 0.80 per USD
31/12/2010 Gain INR 0.50 per USD
Account for these gains in the year 2010.
Value the closing stock accordingly.

Is he taking any FORWARD contracts?

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