Hi Experts
We are service provider-(Export of services-IT) and registered under GST act as well.
Please advise-
1) Date of bill raised to party- 10.04.2021 for $2000 and Payment received from party on dated 15/05/2021 for $ 1980
What should be the right accounting entries for above transaction.
Let assume exchange rates are as follows-
on 10/04/2021- Rs. 70
on 15/05/2021-Rs. 71.50
Thanks in advance
Gaurav
Which spot rate shall be used? and from where to get this rate?
Can you please advise?
And how to treat $ shortage in books?
Account for the invoice in your books in INR on 10.04.2021.
On 15.05.2021 adjust your debtor balance with the amount received in bank.
If there pertains any difference in debtor balance after set off the adjust with foreign exchange fluctuation account in indirect expenditure.
Please look why the payment was made after reducing 20$.,
CAclubindia
