Forex gain/loss

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RITESH B. PANCHAL (Querist)
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30 May 2019 Dear Sir/Madam,

There is debit balance of Rs.13,450/- as forex gain in party's ledger.
What does it mean ?
Do we have to collect it from party as receivable ?
Please advise.

Amol S Joglekar

Amol S Joglekar (Expert)
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06 June 2019 you need to transfer the same to P & L

RITESH B. PANCHAL

RITESH B. PANCHAL (Querist)
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06 June 2019 Dear Amol Sir,
Please advise how to transfer to P & L in order to make party's ledger nil.

Amol S Joglekar

Amol S Joglekar (Expert)
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07 June 2019 You said you have debit balance of Rs.13450/-. It means there seems to be loss.
Debit Foreign exchange Loss
Credit Party's account

RITESH B. PANCHAL

RITESH B. PANCHAL (Querist)
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07 June 2019 Dear Amol Sir,
In our books of account, entry is as below.
Party Account ......Dr
Forex Gain/Loss ......Cr.
So there's confusion what to do.
Please advise.

Amol S Joglekar

Amol S Joglekar (Expert)
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07 June 2019 then what is the issue?
The gain is already transferred to P & L
Why is it showing debit balance of 13450/-

RITESH B. PANCHAL

RITESH B. PANCHAL (Querist)
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07 June 2019 How to nullify party's ledger because it's not receivable ?

Amol S Joglekar

Amol S Joglekar (Expert)
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07 June 2019 then may be, the entry is recorded twice.

RITESH B. PANCHAL

RITESH B. PANCHAL (Querist)
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07 June 2019 It's not double entry.