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Regarding accounting of import invoices

133 views 2 replies

SHYAM KRISHNAN K

263 Points Joined May 2018

While booking import purchase , which exchange rate would we consider.

I have mada an advance payment for import purchase at an exchange rate of 60 USD. After one month when the goods was received the USD is 65 in this case for booking of purchase which usd should I consider.

Replies (2)

hemant sharma

141 Points Joined June 2017

Purchase a/c Dr 60
to supplier 60

supplier a/c Dr 60
foregin exchange fluctuation reserve a/c Dr 5
to cash a/c 65

at the end of the year

p&l a/c Dr 5
to foregin exchange fluctuation reserve a/c 5