14 June 2013
Ms. xyz pvt ltd is carries on business of trading. They import goods from Australia and USA. They make 100% advance payment According to me the co is to record the transaction of payment considering the exchange rate as on that day Later it should record the purchase transaction on the date of Bill of Entry.
The exchane gain/loss will be the difference in exchange rate s on date of payment and bill of entry . Let me know if this is correct. If not refer to any othe method.
CAclubindia
