Reconciliation of usd a/c
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
08 July 2015
Whenever we receive USD credit in the bank account, we booked the same in Tally in INR with the exchange rate prevailing that day. Similarly, when we have to pay to our principles in USD, we pay the same. When accounting in our books, we pay a different amount due to a different exchange rate as on the date of payment.According to the Bank Statement, there is Nil balance in our account, but in our books there is a balance.
For eg. assuming I receive USD 1000 from X today. I enter the same in the books at the prevailing exchange rate of Rs 64/$. Thus, I have a balance of Rs 64,000/-. Now, in future, if I have to pay USD 1000 to Y, and if the exchange rate that at that time is Rs 65/USD, there would be a balance of Rs. 1,000/- in my books. But, my bank account will have Nil balance.
For eg. assuming I receive USD 1000 from X today. I enter the same in the books at the prevailing exchange rate of Rs 64/$. Thus, I have a balance of Rs 64,000/-. Now, in future, if I have to pay USD 1000 to Y, and if the exchange rate that at that time is Rs 65/USD, there would be a balance of Rs. 1,000/- in my books. But, my bank account will have Nil balance.
CA R SEETHARAMAN
(Expert)
08 July 2015
If your bank is maintaining foreign exchange account in USD, You need to adopt the same exchange rate i.e adopt 64 for payment also.
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
- EPF ECR NEW FILE SEP 17TH 2026
- Import of Software Service.
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- SECTION 393(3) TAX ON CASH WITHDRAWAL
- TDS on Fixed Assets purchased
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- GST on Renting godown to KFCSC for Storage of Raagi
- Clarification Requested: Gift → NRO → NRE → Overseas Transfer - USA/CANDA (FEMA & Tax Compliance)
- Under marginal scheme
- Capitalgain tax purposes for valuation report compulsory
- Capital Gail Exemption Certificate
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- 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
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
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
