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
Rate/$
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
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
  • 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

         TO FOREIGN EXCH. FLUCTUATION    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.

     

    Thanks,

    Hemant

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