journal entry for fwd contract for hedging ??
This query is : Resolved
22 March 2011
i was solving problems on as-11. i got stuck in passing the journal entries having foreign exchange and foward contract to minimise exchange rate risk.
confusion was due to forward contract. also i did not understand what is forward premium.
someone please help my logically the journal entries for forward contract??
my id abhipcc@rediffmail.com
confusion was due to forward contract. also i did not understand what is forward premium.
someone please help my logically the journal entries for forward contract??
my id abhipcc@rediffmail.com
22 March 2011
suppose we have booked a forward contract for three month dated 01.03.2011 on the @ Rs. 47.00 per dollar and spot rate on 01.03.2011 is RS. 46.70.
Spot Rate on 31.03.2010 Rs. 46.80
There will be forward premium of rs. .30.
Journal Entry.
01.03.2010
Forward contract Receivable Dr. 46.70
Deferred Premium Dr. .30
To Forward Contract Payable- Cr 47.00
31.03.2010
Premium on Forward Contract - Dr. .10
to Deferred Premium -Cr. .10
31.3.10
Forward contract Receivable Dr. .10
To gain on forward contract - Cr. .10
Spot Rate on 31.03.2010 Rs. 46.80
There will be forward premium of rs. .30.
Journal Entry.
01.03.2010
Forward contract Receivable Dr. 46.70
Deferred Premium Dr. .30
To Forward Contract Payable- Cr 47.00
31.03.2010
Premium on Forward Contract - Dr. .10
to Deferred Premium -Cr. .10
31.3.10
Forward contract Receivable Dr. .10
To gain on forward contract - Cr. .10
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
- Reopen of assessment proceeding
- Depreciation of fixed assets- coop housing society in mumbai
- TDS on Consultancy- Non DTAA
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Rental income gst and it purpose
- Management System (IMS)
- COMMERCIAL INVOICE FOR MATERIAL AND FREIGHT
- EPF FULL & FINAL RULES IN 2026
- FTS Taxable under 115A
- Experts need help
- 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
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
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
