accounting treatment for foreign exchange loss/gain
My company export sales $100.00 to XNC LLC
payment received after 30 days $100.00 we have a EEFC $ account.
at the time of sale we recorded in tally as per shipping bill amount(in INR) and at the time receipt we recorded actual amount we receivable as per shipping bill not as on exchange rate on that date. is is it correct entry. we raised invoice in ($) and received amount in ($).
could u pls guide this case
Santosh M. | Experienced Tutor in Finance (including Accounting) and TaxationExperienced Tutor in Finance (including ...
Marked as Best Answer
Please send datewise transaction history ie. sale, date of invoice received, date of accounting, year end date and date of payment. For all these dates, request you to kindly provide INR=$ exchange rate. This is required to compute exchange gain/ loss. If such sale is outstanding as on 31st December then whatever exchange difference arising between sale date and year end date will be regarded as notional gain/loss and will be shown in Other comprehensive income only.