DEAR ALL,
THE COMPANY KEEPS IT’S BOOKS OF ACCOUNT IN USD CURRENCY. THE COMPANY HAVING SUPPLIERS TO WHOM PAYMENT MADE IN EURO CURRENCY.
THE COMPANY HAD ALREADY CLOSED ITS BOOKS OF ACCOUNTS. WHILE CHECKING SUPPLIER RECONCILIATION , IT WAS FOUND THAT IN USD CURRENCY ACCOUNT CLOSED, BY CREDITING TO – EXCHANGE GAIN A/C
2) IN EURO CURRENCY SAME SUPPLIER BALANCE SHOWED CREDIT BALANCE. SO FOR CLOSING SUPPLIER LEDGER IN EURO CURRENCY – IF WE PASSED ENTRY BY CREDITING TO – EXCHANGE GAIN A/C -
NOW QUERY IS THAT :
- EXCHANGE GAIN ENTRY TWICE – FOR THE SAME SUPPLIER UNDER USD AS WELL AS IN EURO CURRENCY. – DUE TO THIS PROFIT AND LOSS A/C SHOWED TWO EXCHANGE GAIN FOR THE SAME SUPPLIER. – SO THIS TREATMENT IS CORRECT ???
YOUR SUGGESSION ARE HIGHLY APPRECIATED .
CAclubindia
