Can anyone please guide me on export sale transaction and its journal entries in books of accounts, as i am getting confused for export sale transactions.
For reference i am giving an example of a transaction, please guide me regarding accounting entries, rate of exchange and any other further treatment of the same in books of accounts
Ex - if a company makes an export sales for 1 lakh dollars on receiving the sales order dated 28th feb. 2014, the sales invoice is raised on 1st march, 2014 (Spot rate - 39 Rs. per US dollar). Bill of lading is prepared on 5th march, 2014 (Spot Rate - 41 Rs. per dollar). The goods are actually dispatched from Mundra port to US on 7th March, 2014.
On 5th april, 2014 the company receives a payment of 1 lakh dollars The spot rate on 5th april was 40 Rs. per US dollar, The rate on 31st march, 2014 was 42 Rs. per US dollar.
Please provide the entries to be passed in books of accounts and further treatment of the whole transaction in financial statements.
CAclubindia
