Import payments accounting

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2011 Hi,

I received one USD invoice for USD1000 in the month of Sep 2011 (USD RATE 45), invoice dated March 11.

I am going to pay the vendor on Oct 11 (USD rate 46)

There is the different in USD rates.

What was the entry and adjustment I have to pass?

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

21 September 2011 Para 9 of AS 11 provides that foreign currency transactions should be recorded at the exchange rate prevailing on the date of the transaction.

Para 12 of AS 11 provides that payables are examples of monetary items.

Also, Para 13 provides that exchange difference arising on settlement at rates different from those at which they were initially recorded should be recognised as income or expense.

Accordingly the treatment will be as under:

Exchange DifferenceDr. Rs. 1,000/- (1000*1)
To Payables Rs. 1,000/-

Payables Dr Rs. 46,000/-
To Bank Rs. 46,000/-

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
Follow

29 September 2011 The expert entries are absolutly right

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Rakesh Bansal

SANJAY GAIROLA

Saumil Kapadia

DSK TMC

Frank

Subscribe Now

Import payments accounting

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Accountant

CA Final

GST CONSULTANT

GST CONSULTANCY

Manager- Finance and Compliance