Foreign exchange loss

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vinay makhija (Querist)
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11 September 2013 Sir,
I would like to know in an example the treatement for the exchange loss.
if a person purchased goods for 2000$ (rs. 1,10,000/-) in february 2013 wen the dollar rate was rs. 55/- per $ and the dollar rate was rs. 60/- per dollar on 31st march,2013. the payment was made in august 2013, for 1000$ wen the rate was rs. 65/- per dollar and paid the amt of rs 65,000/- wat should be the accounting entry for loss on foreign exchange. and the balance payment for 1000$ was done in december 2013 wen the dollar rate is rs.70/- per dollar pls provide me the entry to be passed for the exchange loss as on 31st march 2013. and effect of the entry in books before filing of return and after filing of returns. pls provide me with some supportings as well.
thx and regards,
vinay makhija.

Ganeshbabu K

Ganeshbabu K (Expert)
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11 September 2013 1)

Dr.PartyA/c
Cr.Forex fluctuation A/c

Amount for [2000$*(60-55)]
(being amount restated as on 31.03.2013 with exchange rate as on 31.03.2013,)31.03.2013
2)
Dr.Forex fluctuation A/c
Cr.Party A/c

Amount for [1000$*(65-60)]

[being forex loss booked]august2013

3)

Dr.Forex fluctuation A/c
Cr.Party A/c
Amount for [1000$*(70-60)]

[being forex loss booked]dec2013

vinay makhija

vinay makhija (Querist)
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14 September 2013 Sir, Thx for the reply i would also like to know whether the paymt made in august will affect the books for the year ended 31st march 2013 or it will be in my books for the F.Y. 2013-14

Ganeshbabu K

Ganeshbabu K (Expert)
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15 September 2013 it will be in books of 13-14

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