Salary transfer to philippines

subhashri (senior accountant) (50 Points)

23 March 2011  

We have a employee deputed in philippines for whom we are making salary payment every month. The amount is wired in dollars from our current account as per the conversion rates

The offer letter provided to the employee for salay is philippine pesos. Do I have to convert the pesos in rupees and pass the JV. The bank is converting INR to USD while making the salary transfer


I am following the below entry

journal entry

Salary a/c   xxxxxxxxxxx (dr)  

salary payale a/c         xxxxxxxxxxxxx(cr)

on the trasaction date

salary payable a/c    (dr) xxxxxxxxx

exchange loss /gain a/c (dr/cr)xxxxxx

Bank a/c     xxxxxxxxxx(cr)


Please advise.