Foreign Currency accounting
This query is : Resolved
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
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
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.
Book gain in foreign currency separately.
Show 31st March rate in case of holding.
30 September 2022
Noted with thanks Sir
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Section 194JA & JB Income which ITR Form to use
- Scrutiny and reopening of past returns
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- GST ON TRAVELLING BILLS
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
