Forward Cover
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 June 2011
Sir, I have a dought in my mind.
If a company is making export sale and recieves L/c from Buyer, L/c is discount from bank. Also a forward cover is taken.
I want to know the following:
1. How to make treatment of Forward Cover
2.At what value to Recognise The Sale Amount
3. Wheather the settlement of forward cover will have effect on sale value
4 Can we make following entry at the year end for forward cover gain
forward cover recievable dr.
to P&L A/c
If a company is making export sale and recieves L/c from Buyer, L/c is discount from bank. Also a forward cover is taken.
I want to know the following:
1. How to make treatment of Forward Cover
2.At what value to Recognise The Sale Amount
3. Wheather the settlement of forward cover will have effect on sale value
4 Can we make following entry at the year end for forward cover gain
forward cover recievable dr.
to P&L A/c
19 June 2011
Sale value to be recognised at the exchange rate on the date of the transaction.
Settlement of forward cover will not effect the sale value. It is frozen at the transaction date rate.
The entry suggested by you is correct, provided the sale transaction has taken place and there is a debtor in the books. Debtor balance will also be restated in addition to the above entry.
Settlement of forward cover will not effect the sale value. It is frozen at the transaction date rate.
The entry suggested by you is correct, provided the sale transaction has taken place and there is a debtor in the books. Debtor balance will also be restated in addition to the above entry.
13 July 2023
"Sorry, I am not a featured member."
For featured members contact....
https://www.caclubindia.com/catalogue/featured.asp
For featured members contact....
https://www.caclubindia.com/catalogue/featured.asp
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
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
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
