Foreign Excahnge Gain or loss
This query is : Resolved
05 August 2008
A company ipmorts a particular software and Hadrware @20,000 USD. As per the terms and condition 50% advance payment is to be made. then he will deliver the goods adn after deliver of goods balance payment is to be made.
on 1/4/7 company pays 10,000$ @40.05.
Rs.4,00,500/-. Hence advance payment entrty is passed.
Goods are received on 9/4/7 and as per Bill of entry rate of exchange is 41.8 per dollar.
on 9/4/7 company booked purchase entry and exchange difference of 0.24paise/-.
When balance payment USD10,000 is paid rate of Exchange is 40.08/- and hence again company booked exchange difference of .03 paise.
Is the compny is right bookimg exchange difference at every stage or it should book excahnge difference for the purchase made but neither the goods are received nor payment is made on 31st march 2008.
Plz.
help
on 1/4/7 company pays 10,000$ @40.05.
Rs.4,00,500/-. Hence advance payment entrty is passed.
Goods are received on 9/4/7 and as per Bill of entry rate of exchange is 41.8 per dollar.
on 9/4/7 company booked purchase entry and exchange difference of 0.24paise/-.
When balance payment USD10,000 is paid rate of Exchange is 40.08/- and hence again company booked exchange difference of .03 paise.
Is the compny is right bookimg exchange difference at every stage or it should book excahnge difference for the purchase made but neither the goods are received nor payment is made on 31st march 2008.
Plz.
help
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