DOLLOR DIFFRENCE

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This query is : Resolved

MAHESH (Querist)

19 August 2009 WE MAKE A EXPORT SALE (USA) OF $106848
BUT IN OUR CURRENCY INVOICE MADE RS.52,67,640/-
& PARTY SEND US A DOLLORS 3 TIMES.
1. ADVANCE $21365 @ RS.49.16 i.e. RS.10,50,284.74
2. AFTER SALE $74786 @ RS.48.73 i.e. RS.36,44,302.29
3. & LAST $10680 @ RS.47.89 i.e. RS.51,14,55.62

NOW AT THE LAST IN OUR ACCOUNT SHOWS OUTSTANDING OF RS.61,598.35

I WANT TO CAN I WRITE OFF THIS AMOUNT?
IF YES, TELL ME UNDER WHICH ACCOUNT HEAD?
IF NO, TELL ME WHAT I DO WITH THIS FIGURE?
TELL ME JOURNAL ENTRY WHICH I WILL USED IN TALLY.

Guest

Guest (Expert)

19 August 2009 Dear Mahesh

The above mentioned amount is your loss and should be written in P&L a/c. The account Head can be "Forex profit or loss A/c"

Journal Entry should be:

Forex Profit or Loss A/c Dr. XXXX
To Customer A/c XXXX

P&L A/c Dr. XXXX
To Forex Profit or Loss A/c XXXX

Hope this assists you.

Thanks & Best Regards
ca.hims@gmail.com

MAHESH

MAHESH (Querist)

20 August 2009 what is meaning of Forex?

Prakash Kanaka M.P.

Prakash Kanaka M.P. (Expert)

20 August 2009 Mr.Mahesh,

The journal entries will be as follows.
1) At the time of sale

Customer a/c 5267640 Dr
To Export Sales 52,67,640
( USD 106848 x 49.30)

2) 1st Payment of USD 21365
Bank a/c 1050284-74 Dr
Exchange rate flucuation 3009.76
To Customers 10,53,294-50
( USD 21365 x 49.30 to customer a.c and the differene 0.14 to forex loss a/c)

3) 2nd Payment of USD 74786
Bank a/c 36,44,302-29
Ex.rate loss 42,647-51
To Customer = 36,86,950
( USD 74786 x 49.30) (74786x49.30-48.73)

4) 3rd & final payment 10680

Bank a/c 5,11,455-62
Ex.rate loss 15,059
Bank charges 871
To Customer 527395
( Your invoice values is USD 106848 whereas you have received USD 17 short that will be bank charges ( USD 17 x 49.30)