Journal Entry to square-off financial transaction
This query is : Resolved
Amit Bhatkar
(Querist)
15 March 2009
Is it possible to pass the Journal entry by squaring-off a/c receivable to a/c payable of the same party ?
Suppose if we make purchase and sale to same party situated outside India. My question is whether can pass the following entry.
A/c Payable .........Dr
To A/c Receivable
Does it violate any rules under FEMA ?
Thanks and Best Regards
Amit
Suppose if we make purchase and sale to same party situated outside India. My question is whether can pass the following entry.
A/c Payable .........Dr
To A/c Receivable
Does it violate any rules under FEMA ?
Thanks and Best Regards
Amit
Manmohan ACA, CS
(Expert)
15 March 2009
NO it does not violate any rule
Amit Bhatkar
(Querist)
16 March 2009
Dear Sir,
Thanks for the reply.
But what about the Exchange Fluctuation Gain / Loss if any ?
For example, we booked our a/c payable @ Rs. 45/- per US$. We booked our a/c receivable @ Rs. 48/- per US$.
If I want to sqaure-uP the payable agnst receivable, so what conversion rate should I apply, whether todays rate ie. Rs. 51.5/- per US$
Will it do, sir ?
Amit
Thanks for the reply.
But what about the Exchange Fluctuation Gain / Loss if any ?
For example, we booked our a/c payable @ Rs. 45/- per US$. We booked our a/c receivable @ Rs. 48/- per US$.
If I want to sqaure-uP the payable agnst receivable, so what conversion rate should I apply, whether todays rate ie. Rs. 51.5/- per US$
Will it do, sir ?
Amit
02 August 2024
https://docs.google.com/document/d/1fTrFcIDnspHKYowRmjSaMl17RVE7uuIT8c9LrtdVE6k/edit?usp=sharing
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