Netting-off foreign transaction by Journal entry

Amit (Service) (457 Points)

15 March 2009  

Hi All

Can we net-off the foreign transaction  by passing Journal entry?

For example : Suppose we are liable to pay dividend to one of our group company X in Europe , and at the same time X compnay is liable to pay professional fees to our company in India

If the outcome of both the transaction is same say Euro 10,000. Could we pass the journal entry by debiting divend payable and crediting professional fees receivable a/c ?

Please help me.