Foreign transactions

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Ravi Kumar Rajgaria (Querist)
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20 May 2008 Closing foreign currency have to conert in Rupees for Bal. Sheet at closing rate on 31/03/2008. But should we also convert the unclear transaction at closing rate?
Example: Closing Rate = Rs.40/$
On 29.03.08 Cheque issued for $1000 @Rs. 38/$ but not clear till 31st March. Should we book the exchange difference for Rs,2 in books for unclear transaction as per AS-11. Please guide

CA. Vineet Grover

CA. Vineet Grover (Expert)
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20 May 2008 Hi Ravi,

You need not have to pass forex fluctuation entries for uncleared cheques.

For FCTL account, you need to restate the bank balance as at 31st march as per the rate applicable on that date.

Rgds/

Vineet