FOREIGN EXCHANGE TRNSACTION

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IF TRANSACTION DATE OF EXPORT ( INVOCIE DATE ) IS 20.12.2006 AND THE RATE OF CONVERSION OF USD  IS  44.55 AND THE EXPORT REALISATION IS DONE ON 25.01.2007 @ 44.25 ? NOW QUESTION ARISE, IS THE PARTY LEDGER IS TO DEBITED BY  TRANSACTION DATE AMOUNT OR THE REALISATION DATE AMOUNT.

1. IN FIRST CASE : THERE WILL BE A DIFFERNEC RESULTIN  IN PROFIT OF .30 PAISE , IS ITS TREATMENT WILL BE IN P&L?

2. IN CASE SECOND : THERE WILL BE A TOTAL A/C. SETTLEMENT.

WHAT SHALL BE MY APPROACH?  
Replies (2)
The One Says:

Read your pm for answer.
Hi Ramkrishna,
Such Export transaction is booked on date of receipt of such exported goods i.e the date on which GRN is made.Hence the rate of exchange will be the rate of exchange on date of GRN.
The difference between the rate of exchange on payment date and date on which such export booked will shown in P & L A/c  Exchange loss/gain


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