Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Re:my previous query regardung AS11

Save Share

This query is : Resolved

Raj Dutta (Querist)
Follow

04 June 2010 31/03/2010
part a/c dr 500*(48-45)
*foregn Ex gain /loss (C.L) 500*(48-45)

CA Shivang.

in the above entry i have credited foregn Ex gain /loss (Current .Liability) 500*(48-45)

but as per your suggested entry ie

Bank (40*46) dr
Loss on FOREX (40*2)
To party a/c/ debtor account (40*48)

*Ex gain /loss (Current .Liability) 500*(48-45)
this enry is not set off.

so please suggest

with regards

raaj

Abhishek

Abhishek (Expert)
Follow

04 June 2010 Dear Raj,
Foreign exchange gain/loss is an item of p&L a/c and not current liabilty.

So on 31st March,2010, the following entry should be passed:

Customer A/c Dr. 500*(48-45)
To Foreign Exchange Gain (P&L) 500*(48-45)

If the part payment of recievables has been received during the year and no interim financials are required to be prepared, then the next variation due to forex has to be booked either at the time of final realisation or year end, whichever is earlier and gain/loss has to be booked accordingly in the P&L a/c.

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