Foreign exchange gain in store consumables
This query is : Resolved
Divya Agarwal
(Querist)
30 April 2014
Dear Experts,
A company has imported some store consumables from Korea,having exchange gain of RS 2000 on purchases of 200000. can company can pass a jv entry :
forex gain A/c dr. 2000
To stores& spheres A/c 2000
or it has to transferred to P&L A/c
A company has imported some store consumables from Korea,having exchange gain of RS 2000 on purchases of 200000. can company can pass a jv entry :
forex gain A/c dr. 2000
To stores& spheres A/c 2000
or it has to transferred to P&L A/c
30 April 2014
Hello,
Transfered to statement to profit and loss account.
Transfered to statement to profit and loss account.
Message likes :
1 times
Divya Agarwal
(Querist)
30 April 2014
Thanks prashanth for your help
01 May 2014
Foreign Exchange Gain recognised on purchase has to be credited to Profit & Loss Accounts.
Refer Accounting Standard 11.
Exchange differences arising on the settlement of monetary items or on reporting an enterprise’s monetary items at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, should be recognised as income or as expenses in the period in which they arise.
Refer Accounting Standard 11.
Exchange differences arising on the settlement of monetary items or on reporting an enterprise’s monetary items at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, should be recognised as income or as expenses in the period in which they arise.
Message likes :
1 times
Divya Agarwal
(Querist)
01 May 2014
Thanks for explanation it was really helpful.
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
- Accounting treatment of AMC alongwith the purchase of Laptop
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Taxation of crypto futures in India Fy 2026- 2027
- Transfer of Physical Stock Between Two Proprietorship Concerns
- EPF ECR NEW RULES Sep 17th 2026
- Issuing of delivery challan by seller of goods
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
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
