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Foreign Currency accounting

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(Querist)
29 September 2022 Dear Sir,

Our directors are going to abroad for a business trip. They carried AED.20,000 to meet the expenses in cash. Once they are back, the remaining balance is AED.5000 only. Please advise on the accounting treatment.

Initial Balance - AED.20000 ( I think spot rate at the time of buying currency by the bank)
Expenses AED.15000 ( May i know, which rate we need to book the expenses)
Balance amount- AED.5000 ( Rs. 1 get gain on currency valuation, while currecy return to local bank in India)

If the company chose to hold the currency for this Fin year, which rate should i show in the accounts)

Normal business expenses

Thanks
Sarath Kurian
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
29 September 2022 Expenses AED.15000 book at spot rate buying currency.
Book gain in foreign currency separately.
Show 31st March rate in case of holding.
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SARATH KURIAN

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SARATH KURIAN (Querist)
30 September 2022 Noted with thanks Sir
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