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MPR sanjay Kumar (CA student)     28 January 2021

Accounting

for example : if I have a customer sruthi ,IAM selling the goods to her on 28.1.2021.but my customer pay the money on Feb 1.2.2021.....

in my books which of date I have to take and enter my sales entry recording.......


another think ,how to find out the exchange loss or gain in foreign exchange rates with examples


could you please tell me these two queries..


 2 Replies

Sourav

Sourav (Student)     28 January 2021

You should show the sale entry on 28.1.21
Abdul Razak

Abdul Razak (Accountant)     28 January 2021

When Credit Sales

28-01-2021  Sruthi  A/C Dr (Under head - Sundry Debtors )

                    To Sales A/C (Under head - Direct Income)

             (Being Goods sold to Sruthi  Invoice. No.......... Dated.....)

When receive payment 

01-02-2021            Cash/Bank A/C Dr

                               To Sruthi A/C 

                (Being Cash Received against Invoice. No......... Dated........) 

When Cash Sales 

01-02-2021                     Cash A/C Dr

                                       To Sales A/C

                  (Being Cash Received against Invoice. No......... Dated........) 

Accrual Basis Concept :-

Revenues are recorded when earned.

Expenses are recorded when incurred.

                                       *********************************************

Foreign Exchange gain & loss :-

Foreign Exchange gain & loss occur when purchase/sales of goods in foreign currency due to currency difference (Fluctuating) .

Purchasing Equipment from GBP 7000/- worth.

Rate - GBP to USD 1.30

USD 1.30 (7000 x 1.30 = 9100/-)

Purchase of Equipment

Equipment A/C Dr 9100/-

To Supplier A/C   9100/-

When payment

Rate GBP to USD 1.25

USD 1.25 (7000 X 1.25 = 8750/-)

Currency Difference 9000 minus 8750 = 350/-

Supplier A/C Dr 9100

To Foreign Exchange Gain A/C 350

To Bank A/C                                 8750

 

 


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