Foreign exchange gain\loss

Dear Sir,

I want to know the treatment of foreign exchange in books of accounts for the undergiven.

1.I made an invoice of say $5000 on 25th May'13 when the rate was 1$=60. But when I recieved the amount on May'14 from the party the rate of exchange deviated to 1$=62. 

2. I made an invoice of say $5000 on 25th May'13 when the rate was 1$=60. But when I recieved the amount on August'13 from the party the rate of exchange deviated to 1$=62. 

Replies (2)

You sold goods at Rs. 5000 X 60 = Rs. 300000

You received payment Rs. 5000 x 62 = Rs. 310000

Hence. Rs. 10000 is your gain. Thus, Foreign Exchange gain / Loss should be credited and if it had been a loss, debit it.
 

Would it apply for both the given cases?

 

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