Dear Friends
The below mentioned transaction is extracted from an internal audit report. Please give your valuable opinion as per AS 11. Whether Exchange fluctuation will come when advance money received?
In one transaction Exchange fluctuation amount wrongly debited to the amount of Rs.7,377/- instead of Rs.5,314/- i.e. Advance received from the customer for $ 11809 @ Rs.49.86 amounting to Rs.5,88,797/- against Invoice value of $ 11850 @ Rs.50.31 amounting to Rs.5,96,173/-. The Loss on Exchange fluctuation is Rs.5314/- only. The necessary adjustment to be done for this transaction. The details is given below:
|
Particulars |
In USD ($) |
Exchange Rate |
Amount in Rs. |
Remarks |
|
Sales Invoice Amount |
11850 |
50.31 |
5,96,173 |
|
|
Advance received from the Party |
11809 |
49.86 |
5,88,797 |
|
|
Loss on Exchange Fluctuation |
11809 |
.45 (50.31-49.86) |
5,314 |
|
|
Amount charged as Exchange fluctuation in books |
|
|
7,377 |
|
|
Discount on |
41 (11850-11809) |
50.31 |
2063 |
To be accounted as discount on sales in Books |
CAclubindia
