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.
CAclubindia
