Case 2

Whole Payment of $ 1000 made in advance on 10 Feb at the time of booking Order
Goods Imported later
Exchange rate on different dates were as follows

Date Descripton Exchange
10-Feb Booking of Order, Advance paid 60/$
14-Feb Date of Goods Entering India 61/$
15-Feb Rate as per Bill of Entry 62/$
16-Feb Date of Goods Entering Factory 63/$
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  1. Accounts and Finance
  2. Step 2 Passing Routine Entries
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CA Maninder Singh
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  • Daylyn Patel's image

    If, Max Ltd A/C ----------- DR                                    2000

                    To Foreign Exchange Fluctuation A/C               2000

    Then is it gonna be Loss or Gain Entry


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  • hem1717's image

    Respected Sir/Ma'am! Would you pls explain the third entry, i.e.

      MAX LTD USA Dr.      2000


    I want to know if the company made purchase suffered any loss due to exch. rate diff and why Max ltd has been debited and foreign exch has been credited.




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