accounting entries

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our one of the client having food testing business...they provide services outside and recd the foriegn currency ..what is the accounting treatment for the same??
Replies (5)

The Sale May Be Recoreded on Basis of Indian Currency 

& While receiving Payment From Client.The Difference in Currency Taken as Foreign Exchange Gain  / loss in Business.........

Ayush is right, if u received the sum in the same year

But if you have receivable then you have to follow AS-30

But dont worry it is not mandatory this year it will be mandatory from 01.04.2011

So You can well follow AS-11 i.e

You can recognize the receivables at the closing rate on the reporting date and any difference should transferred to Profit & Loss A/c as per AS-11

Foreign Company just treat a party and similarly book a entry just like indian party.

but currency u have to book in INR and year end u have to book foreign currency exchange loss.

Detailed u have to read AS -11

thanks to all

thanks

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