Forex gain/loss

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This query is : Resolved

RITESH B. PANCHAL (Querist)

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)

06 June 2019 you need to transfer the same to P & L

RITESH B. PANCHAL

RITESH B. PANCHAL (Querist)

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)

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)

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)

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)

07 June 2019 How to nullify party's ledger because it's not receivable ?

Amol S Joglekar

Amol S Joglekar (Expert)

07 June 2019 then may be, the entry is recorded twice.

RITESH B. PANCHAL

RITESH B. PANCHAL (Querist)

07 June 2019 It's not double entry.