Export sales

Save Share

This query is : Resolved

Abhishek (Querist)
Follow

11 October 2013 we are maufaturure doing Export Sales. Some time we get advances $ (Dollar) for Sales.
My question is

in May Dollar was 54 (Assume), that time we received advances Dollar for sales, now price is dollar is rs. 64. if we sale this time for that advances, in which rate of dollar amount we consider sales. is we sales booked on that advance as rs. 54 or 64 ??
please guide us for sales treatment

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
Follow

11 October 2013 AS11-Effects of changes in foreign exchange rate will apply in this case and the date of receiving dollar shall be imp for applying coversion rate.

Message likes : 1 times

Ganeshbabu K

Ganeshbabu K (Expert)
Follow

12 October 2013 Sales shoould be recognised on date of sales with rate available on date of sale,and correspondingly gain/loss on forex-fluctuation to be recognized

Assuming invoice for 100 dollors

1)
Dr.Bank A/c 100*54
Cr,Debtor A/c 100*54
(Being advance 100$ recd from debtor @54)

2)Dr.Debtor A/c 54*100
Dr Forex-fluctuationA/c 10*100
Cr.Sales 64*100
(Being sales made@ 64 per $)

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

13 October 2013 Sale shall be considered at the rate applicable of the date of invoicing or the contracted rate. Since advance is only part of sale, you must have converted it @54/-, which shall be adjusted against final sale invoice as indicated by Mr Ganesh.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now