Treatment of Advances in Foreign Currency at 31st March
This query is : Resolved
22 May 2024
Suppose
I have imported goods on 1.10.2023 by giving advance of 10000 $ @ Rs.50 per $ i.e Rs. 500000 and we received a goods worth 9000 $ @ Rs.45 per $ i.e Rs.405000 ( this entry was made by considering the Exchange rate mentioned in Bill of entry ) on 23.11.2023 we have booked a profit of Rs. 45000 i.e ( 9000 x 5 ) on 23.11.2023. But what about aur extra payment of 1000 $ to our supplier. At 31.3.24 closing rate is say Rs. 51 per $
What is the treatment of the advance in our balance sheet BS and how it affect our PL
As per AS-11 ???
I have imported goods on 1.10.2023 by giving advance of 10000 $ @ Rs.50 per $ i.e Rs. 500000 and we received a goods worth 9000 $ @ Rs.45 per $ i.e Rs.405000 ( this entry was made by considering the Exchange rate mentioned in Bill of entry ) on 23.11.2023 we have booked a profit of Rs. 45000 i.e ( 9000 x 5 ) on 23.11.2023. But what about aur extra payment of 1000 $ to our supplier. At 31.3.24 closing rate is say Rs. 51 per $
What is the treatment of the advance in our balance sheet BS and how it affect our PL
As per AS-11 ???
23 May 2024
Advance paid at Rs 50 per $ you can't book any profit. Book foreign exchange loss of 45,000.
Book foreign exchange gain of Rs 1000 on closing balance of 1000 $.
Book foreign exchange gain of Rs 1000 on closing balance of 1000 $.
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
- Showing Gift from relative in ITR for this year
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- ITR filing- non tax audit cases- Asstt.Year 2026-2027
- Soyabean hsn code and gst rate
- Treatment of Pension ?annuity returns on PMVY
- Last year TDS Claim
- Scrutiny assessments u/s 143(2) for AY 25-26
- Regarding IMS Mandatory from 1st July 2026
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- One Post a Week Done Right Beats Seven Done Wrong
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- LTCG on switch of units
- ITR 2 Short Term gain & Long term gain
- Gst invoice numbering and delivery challan numbering
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Small dealers gst returns filing
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
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
