Hi
please tell me accounting treatment for this following events
Event 1-A Co. acquires foreign currency ( say USD) in exchange for RS. ( say 1000 $ @ Rs. 50 per $ )
Event 2-Now they release this FC to one of their marketing officer for his foreign tour under imprest system. Co released 1000 $.
Event 3-One month later after touring the traveller surrendered 100$ and expense sheet for 900$.
Event 4 - Co. Exchanges 100 $ for Rs 48 .
Please write a/c entries for all 4 events !
thanks
FC in Hand A/c Dr 50,000
To Cash / Bank 50,000
(Being FC purchased - $1000 at Rs.50/$)
B) X's Advance A/c Dr 50,000
To FC on Hand 50,000
(Being Tour advance given to Mr.Xand to kept in debtors list )
C) Tour Expenses A/c Dr 45,000(900$* exchange rate at date of transaction or monthly average rate )
FC on Hand A/c Dr 5,000
To Tour Advance 50,0000
D) Exchage of FC
Cash / Bank A/c Dr (100$ X 48) 4,800
Forex Loss 200( Drebited in P/l a/c )
To FC on Hand 5,000
At account closure balancxe in FC a/c should be reinstated at rate existing on balance sheet .
And profit and loss on it is accounted for in P/l a/c
CAclubindia
