Forex entry
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
14 June 2012
we have made sale of a machine in INR, but receipt is in foreign currency EURO. So, whether Forex would be affected? If yes, at what rate Forex Gain / Loss should be recorded?
14 June 2012
Record Sale of Machinery on the date of sale ie when risk and rewards are passed on, at the exchnage rate prevailing on that date for INR: Euro.
Entry:
Debtor Dr. xx
Loss on sale of Machine Dr. xx
To Machine Cr. xx
To Profit on Sale of Machine Cr. xx
When you receive payment of Euro, you will receive it in INR at the date of receipt. This amount will be different then what is debited in Debtor account.
Book the difference between receipt credited in INR on the date of receipt and the invoice date INR value to foreign exchnage fluctuation account in profit & loss account.
Entry:
Debtor Dr. xx
Loss on sale of Machine Dr. xx
To Machine Cr. xx
To Profit on Sale of Machine Cr. xx
When you receive payment of Euro, you will receive it in INR at the date of receipt. This amount will be different then what is debited in Debtor account.
Book the difference between receipt credited in INR on the date of receipt and the invoice date INR value to foreign exchnage fluctuation account in profit & loss account.
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
- About TDS & Income Tax
- Scrutiny and reopening of past returns
- Tax on Deemed Capital Gain
- Booth for sales promotion
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Regarding ITR filing with more value than showing in AIS/TIS
- Exiting partner in partnership firm in gst portal
- Traces submitting correction statement error
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- Can a single LLP in India legally operate multiple unrelated businesses (Travel, Cloud Kitchen, Ecom
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
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
