Hello friends,
If a Company purchase Euro Currency in a Travel Pop up card of the employee on 12-4-2012 say Euro 500 against Rupees. from ICICI Bank. Now, whenever that employee visits European countries, he use that card to withdraw Euros. The rate on 12-4-2012 is 1 Euro = Rs.70. Now a Company pays Rs. 70*500=Rs.35000/- form Company's Current A/c from SBI Bank. Correct me if I am wrong with the following accounting entry for the same.
1) Travel Card (under the head Current Assets) A/c Dr. = Rs.70000
To ICICI Bank (Creditors) = Rs.70000
(Being Amount payable to ICICI Bank Ltd for Travel Card poped with 500 Euros @ Rs.70)
2) ICICI Bank Ltd A/c Dr. = Rs.70000
To SBI A/c = Rs.70000
Is it correct entry????
CAclubindia
