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Pcfc loan
Please advise the accounting treatment for PCFC -
Our general way of business is -
1. WE avail PCFC Loan
2. Make Export
3. Submit the Invoice and other related documents to the same Bank
4. They discount it with corresponding interest on discounting.
Should i close my export debtors on the day of submitting the bill to the PCFC Loan. Please suggest the complete accounting treatment.
Replies (4)
Hi,
Hope this helps.
| PCFC Accounting - Sale made to a foreign Customer A in NY. Inv Value - 100 USD | |||||||
| 1 | On making the Export sales | ||||||
| Customer A | 100 | ||||||
| To Sales | 100 | ||||||
| 2 | On availaing PCFC loan against the Export sale invoice | ||||||
| Bank"X" | 90 | ||||||
| To PCFC loan | 90 | ||||||
| 3 | On receipt of money from Customer A | ||||||
| Bank "X" A/c | 100 | ||||||
| To Customer A | 100 | ||||||
| PCFC Loan | 90 | ||||||
| PCFC Interest | 2.5 | ||||||
| To Bank | 92.5 | ||||||
Regards
Himavanth
Hi
What is the impact in Indian reupees
What exchange rate to be used in each of the above transactions as my base currency is INR
how are the above accounted in INR as my base currency is INR
Hi,
Use the RBI reference rate for converting the foreign currency into INR. Account the same. Any differences arising between the RBI rates and your bank rates should be considered as Bank charges.
Regards
Himavanth KS
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