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?
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FOREIGN EXCHANGE TRNSACTION
Replies (2)
The One Says:
Read your pm for answer.
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
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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