Dear All experts,
Could you please explain me how to revalue any foreign currency receive via FIRC and how to account for the same.?
I mean to say when the exchange gain/loss entry should be passed what exchange rate should be taken into consideration? I will be good if any one can give me an example for the same.
Request you to please give response ASAP.
Thanks Himanshu
Exchange rate or rate difference to take while passing the entry for forex gain or loss is as follows:
First , you need to calculate the amount that would be receivable ie.,
you are having the export sales rate and rate as per FIRC.
Now, you calculate the amount receivable ie, forex amount you have received as per FIRC multiply with the export rate of that particular export against which you had received the amount.
Second, take the difference between the amount received and amount receivable
this gives you the amount of forex gain or loss for which you have to pass the entries.
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