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
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- Value of property in capital gain
- When TDS on GST applied
- Before GSTAT- APL-02 Vs APL-04
- Annual return in Gst
- Copyright software
- Transporter Declaration form
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
