DOLLOR DIFFRENCE

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MAHESH (Querist)
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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)
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20 August 2009 what is meaning of Forex?

Prakash Kanaka M.P.

Prakash Kanaka M.P. (Expert)
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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)