Hi Friends
When the sales which are exported shall be accounted and rate of exchange of which date should be taken for accounting purpose?
To illustrate, the sales invoice is raised on 10-06-08 in USD on US customer. The documents are verified by custom authorities and Bill of Ladding is prepared on 13-06-2008. The goods are actually despatched from the Mumbai custom port to US on 14-06-08.
Now my questions are below:
1. On which date the Sales entry should be passed in the books of account?
2. Which date's rate of exchange should be taken for ascertaining the INR value? Is it the exchange rate on Invoice date (10-06-08) OR is it the exchange rate on the date of Bill of Ladding (13-06-08) ?
Please clarify and provide the rationale for the same.
Regards
Ganesh
CAclubindia
