Export import

yes it can be set off

Can u'll guide me on the documentation part

regards

mahendra

Also consider the provisions of AS-11

Say on 20-11-11 A has imported goods 'd' from B for 100$

Check the exchange rate , for example 48 rupees = 1 $

Then pass

Purchases  4800

to B                        4800

Suppose A has exported goods 'c' to B for 150$ on 21-11-11 ,check exchange rate (assuming 47 rupees= 1 $)

B       7050

to sales         7050

The difference between the exchange rates should be disclosed in P&L A/c

  In the given case there is gain of 1 rupees on 1$ , therefore  gain is 100x1 =100 rupees

Suppose when the balance money is given (for eg. on 30-12-11 and exchange rate is 46 rupees per $)

then there is loss of 1 rupees per $ , therefore loss is 50x1 =50

Net effect is gain of 50 rupees and same should be disclosed in P&L