I have purchased some share eg. For eur 100 in foreign currency eur on 31 December 2021 and recorded the same at the rate on date of 31 December. Now I have sold the shares for eur 200 and I need to record the entry in books of account. I have not converted the currency in INR. Will I be recording the sale at the rate of date of transaction and record the exchange gain loss on sale of share?If not will everything will be treated as only gain on sale of share?
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Accounting for sale of share in foreign currency
Replies (7)
Quick Summary
There
need to be two sets of books
1. shares in foreign exchange
2. inr
profit loss to be calculated
need to be two sets of books
1. shares in foreign exchange
2. inr
profit loss to be calculated
Why two sets of books? I am preparing the accounts for the company in INR and I need to give effect to transactions.
Ok not bad! When you purchased you'll record it translated. When you sold it, you'll record it translated. Gain is translated as well.
Thanks yashaswi. That means the exchange loss / gain will be unrealised or you mean full gain based on translated rates will be gain on sale of share.
Yes Mr Tanishq
Since this is your personal income, when you hold it, you have unrealised gains. After sale record realised gain
Not possible
That is a technical issue not accounts
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