How to record export transaction?

Dear Friends,

I am facing a problem. Please help me to solve it.

Suppose an export of US$ 5000 is made from India and Invoice is made for it at US$5000. Now i want to ask when i want to pass an entry in books in respect of such export sale at what rate of exchange should i convert these US$ 5000 into Rupees for bringing it into books????

How to calculate fluctuation in exchange rate???

Kindly help to solve the above query.

 

Replies (1)

You will record $5000 at the rate which was prevailing on date of invoice say 50/$

Drs would be 5000 X 50

 

when you receive the payment or if you are closing your books then exchange fluctuation should be considered

Suppose the rate is 55 on date of payment

Bank 5000 X 55

TO drs 5000 X 50

To exchange diff(P&L) 5000 X 5

 

if you are closing the books and have not recevied the payment

Drs 5000 X (55-50)

to exchange difference 5000 X 5

 

all the relevant info is in AS-11

https://www.mca.gov.in/Ministry/notification/pdf/AS_11.pdf

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 17 August 2026
Article Assistant

K R Kiran Kumar & Associates

Bengaluru

CA Inter

View Details
Company
06 August 2026
Sr accounts executive, Asst Manager

JAMNA AUTO INDUSTRIES LTD

Jamshedpur

CA Inter

View Details
Company
12 August 2026
Deputy Manager - Finance

RoamPrime Technologies Private Limited

Bengaluru

CA

View Details
Company
14 August 2026
Article Assistant CA Articleship

Eshwar & Co Chartered Accountants - Nungambakkam

Chennai

CA Inter

View Details
Company
ARTICLESHIP 17 August 2026
CA Article Trainee

ASC Group

Noida

CA Inter

View Details
Company
ARTICLESHIP 29 August 2026
Article Assistant

RRPM & ASSOCIATES LLP

Chennai

CA Inter

View Details
Company
08 August 2026
International Corporate Tax Advisory

Shulke

Bengaluru

CA

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details