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.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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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.

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Reconciliation of usd a/c

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