Foreign exchange loss or gain entry

A/c entries 256 views 3 replies

sudhakar yadav

MBA

25 Points Joined May 2015

Hi All,

Please note I received the money in my current bank account after converting USD 355.36 in Indian Rupees 25,724.51 and bank charges of Rs .46.30 deducted from the same.

I received the amount on 25/09/18 currency rate was 1 USD = Rs. 72.5488.

Please let me know the entry and as well how to open the foreign exchange loss or gain account in tally and under which head.3

Replies (3)

Ruchika Somani

Coaching and Practice in Tax Audit Law

4429 Points Joined June 2018

Entry will be

Bank account debit 25742.51

Bank charges account debit 46.30

To (Partys name from whom you got payment) account credit 25788.81

Bank charges here is Foreign exchange loss.

Foreign exchange gain or loss account is opened under Indirect expense head in PNL

satish

teaching

2046 Points Joined February 2009

suppose a seller raised an invoice in dollars($10), receipt to be consider in dollars($10). but exchange rate on the date of invoice is RS. 60 per $. and as on the date of receipt is RS. 58 per $. no loss in dollars.
but loss was raised on conversation.
amount receivable as on sale is RS. 600.
but actually received only RS. 580.
diff is foreign exchange loss.

but in your case no foreign exchange loss. but bank charges can be considered as indirect exp.