Foreign exchange gain or loss
This query is : Resolved
CA.Varalakshmi.M
(Querist)
06 September 2012
Hi friends,
We raise invoice to foreign comp,in turn money would be deposited into EEFC a/c in India
Suppose we raise invoice on 01.05.11 Exchange rate 45.89
Customer deposit the money directly into EEFC a/c on 01.06.11 - Exchange rate 45.00
We convert that foreign currency into indian currency on 8.06.11 - Exchange rate 46.00
Which date difference in exchange rate do we need to consider for calculating foriegn exchange gain or loss?
We raise invoice to foreign comp,in turn money would be deposited into EEFC a/c in India
Suppose we raise invoice on 01.05.11 Exchange rate 45.89
Customer deposit the money directly into EEFC a/c on 01.06.11 - Exchange rate 45.00
We convert that foreign currency into indian currency on 8.06.11 - Exchange rate 46.00
Which date difference in exchange rate do we need to consider for calculating foriegn exchange gain or loss?
CA Navin Jain
(Expert)
06 September 2012
on 01.06.2011 book the loss of Rs. .89 and on 08.06.11 book gain of rs 1.
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CA.Varalakshmi.M
(Querist)
06 September 2012
Thank u Navin for the reply.
one more doubt....
And we have taken advances from the customer ,but no invoice is raised for that even for the year ending.
so which difference do we need to consider here.
exchange rate on advances date and balance sheet date diff?
Please advise
one more doubt....
And we have taken advances from the customer ,but no invoice is raised for that even for the year ending.
so which difference do we need to consider here.
exchange rate on advances date and balance sheet date diff?
Please advise
CA Navin Jain
(Expert)
06 September 2012
BALANCE SHEET DATE.
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