Exchange Fluctuation Gain or Loss
This query is : Open
09 February 2009
Dear All,
Following is my query-
If we have recieved Inward remittance from abroad for Invoice raised against software dev. activity, then in accounts how will be the treatment as far as currency conversion is concerned.
1. The date on which we receive amount in EEFC account
2. The date on which we convert the currency in INR
3. The Date on which we book the invoice.
Please let me know how and what will be the entires taking into consideration the exchange fluctuation gain or loss?
Following is my query-
If we have recieved Inward remittance from abroad for Invoice raised against software dev. activity, then in accounts how will be the treatment as far as currency conversion is concerned.
1. The date on which we receive amount in EEFC account
2. The date on which we convert the currency in INR
3. The Date on which we book the invoice.
Please let me know how and what will be the entires taking into consideration the exchange fluctuation gain or loss?
09 February 2009
When you book the invoice. Take the rate on that date and pass the entries.
Debtors 1000
To sales 1000
When it is actually credited to your account in indian ruppees you pass the entry
Bank 1005
To debtors 1000
To Profit on exchange flucuation 5
or
Bank 990
Loss on exchange fluctuation 10
To Debtors 1000
Debtors 1000
To sales 1000
When it is actually credited to your account in indian ruppees you pass the entry
Bank 1005
To debtors 1000
To Profit on exchange flucuation 5
or
Bank 990
Loss on exchange fluctuation 10
To Debtors 1000
09 February 2009
So, that means there is no need to open EEFC account in the system anywhere.
Regards,
Amit Deokule
Regards,
Amit Deokule
09 February 2009
Sir,
So, that means there is no need to open EEFC account in the system anywhere.
Regards,
Amit Deokule
So, that means there is no need to open EEFC account in the system anywhere.
Regards,
Amit Deokule
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