how to check sales when it is in foreign currency
This query is : Resolved
30 August 2008
hello everybody
i am auditing an organisation which deals with foreign currency they use to import goods and after adding their cost & profit sell them, i would like to xplain it with an example:
LET on 1/5/2007 they sold goods worth $100 then the dollar rate was Rs.40(let)
as the customer pay through credit cards bank credit the amount after 3 days then rate let was Rs.39(let)
the problem is that if they book their sale on 1/5/07 their will be loss due to exchange fluctuation and if the rate i mentioned r changed i.e
1/5/07 Rs.39
3/5/07 Rs.40
their will b profit this is not giving me the correct sale figure and this is effecting the profit
i am auditing an organisation which deals with foreign currency they use to import goods and after adding their cost & profit sell them, i would like to xplain it with an example:
LET on 1/5/2007 they sold goods worth $100 then the dollar rate was Rs.40(let)
as the customer pay through credit cards bank credit the amount after 3 days then rate let was Rs.39(let)
the problem is that if they book their sale on 1/5/07 their will be loss due to exchange fluctuation and if the rate i mentioned r changed i.e
1/5/07 Rs.39
3/5/07 Rs.40
their will b profit this is not giving me the correct sale figure and this is effecting the profit
30 August 2008
You have to only look whether the sale was recorded in INR as on the transaction date and whether the contracted price in FE was realised. The exchange difference on the date of payment will be either profit or loss due to fluctuation.
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
