Foreign Exchange Fluctuation Loss
This query is : Resolved
17 December 2010
Suppose we purchased a material from outside india @ USD 25 and exchange rate was 45 at that time but at the time of making payment the rate of USD went upto Rs. 46 per $, so how this should be treated in accounts, what will be the accounting entry that is to be passed.
18 December 2010
While booking purchase :
Purchase A/c....Dr. 1125
To Creditors A/c 1125
While making payment Entry will be :
Creditors A/c...Dr 1150
To Bank A/c 1150
Forex Fluctuation A/c...Dr 25
To Creditors A/c 25
Purchase A/c....Dr. 1125
To Creditors A/c 1125
While making payment Entry will be :
Creditors A/c...Dr 1150
To Bank A/c 1150
Forex Fluctuation A/c...Dr 25
To Creditors A/c 25
20 December 2010
Purchase a/c dr 1125
to creditor a/c 1125
creditor a/c 1125
currency / forex fluction a/c 25
to bank 1150.
to creditor a/c 1125
creditor a/c 1125
currency / forex fluction a/c 25
to bank 1150.
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