Hi All, I need some help from you guys to figure out how accounting should be done for an invoice raised in US$, payment for which is made to our paypal account and from paypal account it's paid to our HDFC account. Please study the following example case to understand my problem in detail :
we have a client based outside India to whom we sent an Invoice of 540 US$ on 01/10/2012. Invoice doesn't reflect any INR amount and everything is in $. on same date as per RBI data, 1 US$ = 52.7845.
Client transferred the whole amount i..e 540$ to our US$ paypal account on say 01/12/2012. After the payment, paypal deducted 40$ as fees for this transaction on same day i.e. 01/12/2012 and then on 15/12/2012 Paypal transferred that remaining amount i.e 500$ to our HDFC bank current account in INR. Amount transferred was 26500 INR @ 1US$ = 53 INR. Exchange rate applied by paypal were different then RBI exchange rate on 15/12/2012. It was also not same as the exchange rate on 01/12/2012.
Can someone please let me know how bookkeeping should be done for the above mentioned case ?
Thanks,
Divya garg
CAclubindia
