Accounting of export sales

The Accounting Treatment on 31st March: The stock received will be shown in the Notes to Accounts regarding its receipt and non-payment.

The Accounting Treatment on the date of Conversion/payment the amount paid is being recognised

dear manjula

we are exporter and i want to know treatment of foreign currecy fluctations 

The Exchange Difference arising out of Foreign Rate Fluctation shall be recognised in the reporting period as Profit/Loss arising due to Exchange Difference in the Profit and Loss A/c

dear

could you quantify that by the example i coded

 

It shall be treated as follows:

On the Balance Sheet Date a Notes to Accounts shall be made as the Sale i.e., disposal of stock is made on 1st March  and the stock is being sent on 20th March but the payment has not been made due to unfavourable fluctuation.

On the date of transaction the sales shall be entered at Rs.49 per currency as only such amount is being realised against its sale.

(or)

the sales made can be debited with the debtor and on the date of payment made the difference can be represented as exchange loss i.e., Rs.1 per currency. Sorry for the delay

Dear All,

Greetings of the day. My question is if an import or export proceed is backed by a forward contract and the contract is utilised on the due time with the underlying sale or purchase is there any profit or loss even if rupee is appreciated or depreciated. please clarify with an example. As per my thought the profit or loss is notional as this is why forwards are preferred.

 

Regards,

Sourav

7838383576

Dear Siva Make the receiving entry on date 20th march @ 45 and put the difference in foreign exchange diff. a/c. and make the entry on date 30th march also and put the difference in foreign exchange diff a/c and give a note to balance sheet. and do the entry also on date 20th april and put the difference in foreign exchange diff a/c. like 20th march Foreign exchange (received but not encahsed) a/c Dr Foreign exchange dif a/c Dr To Debtors A/c 31 st Marrch Foreign exchange (received but not encashed)A/c Dr To Foreign exchange diff A/c 20th April Bank A/c Dr To Foreign exchange (received but not encahsed) A/c To Foreign exchange diff A/c

thank u all