Foreign currency transactions
This query is : Resolved
31 May 2012
Pls. tell me the treatment of the following problem as per AS-11:-
Suppose a pvt. ltd. co. have import and export business which also sells in domestic market. They import some goods on 100% advance payment. Suppose Rs 50000 (bill raised in foreign currency of $1000 @ Rs 50 per dollar) but actual deliverly of the gooods received later in the same financial year. But at the time of acutal delivery BOE is with Rs 55000.(@Rs55 per dollar) Due to change in exchange rate.So pls tell the accounting entries for this problem and whether their is any gain or loss as per AS-11? If yes pls. also metioned that entries.
Suppose a pvt. ltd. co. have import and export business which also sells in domestic market. They import some goods on 100% advance payment. Suppose Rs 50000 (bill raised in foreign currency of $1000 @ Rs 50 per dollar) but actual deliverly of the gooods received later in the same financial year. But at the time of acutal delivery BOE is with Rs 55000.(@Rs55 per dollar) Due to change in exchange rate.So pls tell the accounting entries for this problem and whether their is any gain or loss as per AS-11? If yes pls. also metioned that entries.
31 May 2012
It is a gain on account of change in exchange rate.
On the date of Advance Payment---
X pvt. Ltd DR. 50000
To Bank 50000
On the date of Booking of Invoice
Purchase DR. 55000
To X Pvtl Ltd 50000
To Exchange Rate Fluctuate 5000
It is a gain on account of change in exchange rate.
On the date of Advance Payment---
X pvt. Ltd DR. 50000
To Bank 50000
On the date of Booking of Invoice
Purchase DR. 55000
To X Pvtl Ltd 50000
To Exchange Rate Fluctuate 5000
Message likes :
1 times
31 May 2012
Dear Nishad u'r reply is as per AS-11 or not pls. mentioned? if yes then pls mentioned the paragraph of AS-11 which show the treatment of the above entries.
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
- Taxable or Tax exempt
- CAPITAL GAIN BASE ON NOTIFICATION
- Form 140 tds
- ITDS U/S.194T of Firm
- NRI starting business in India
- ADVANCE PAYMENT OF ADVOCATE
- Capital gain on sale and purchase of plot
- TDS ON EMAIL DOMAIN SERVICE BILL
- Non-Compliance documents have not been submitted by the contractors debited
- EXPORT COMMERCIAL INVOICE HSN CODE
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
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
