1.How the forward contracts for foreign currency transactions are used. Can anybody explain the same for Import & Export transactions. How the accounting entries for the same has tobe passed.
2.How to book gain / loss in foreign currency transactions of purchase and sales. Whether we have to book it to Raw material / Sales or to Finance expenses.
An agreement to exchange one currency for another, where
1 The exchange rate is fixed on the day of the contract, but
2 The actual exchange takes place on a pre-determined date in the future
The date on which the currency is actually exchanged, is called the ‘‘settlement date,’’
It is too good
S.B.G. & CO. CHARTERED ACCOUNTANTS
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