Hello everyone
can anybody advise me on Accounting Entries that have to be passed for restatement of forward contracts,
we book our incomes n liabilities at forward rate itself, so what entries do i have to pass on 31st march for booking the diff.
Eg. we have sold usd 100000 and booked forward contract @ 46.1 on 1.1.2010 spot rate 45.75. on 31st march rate is 45.
1. sales a/c ..... Dr. 46,10,000
To Debtor A/c 46,10,000
2.Forward exchange Premium A/c........ Dr. 35000
To Profit & lossA/c 35000
What entries do i have to pass on 31.03.2010
CAclubindia
