Case 5A
30% Payment of $ 300 made in advance on 10 Feb at the time of booking Order
Goods Imported later of $ 1000 . Exchange rate on different dates were as follows
| Date | Description | Exchange Rate/$ |
| 10-Feb | Booking of Order, Advance Payment Made | 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/$ |
Balance Payment not yet made till 31 March (Balance Sheet Date)
View answer
10-Feb
MAX LTD USA DR 18000
TO BANK 18000
16-Feb
PUR DR 62000
TO MAX LTD USA 62000
31-Mar
FOREIGN EXCH. FLUCTUATION DR 4250
TO MAX LTD USA 4250
Assuming Exchange rate as on 31 March is 66.25
Fluctuation=66.25-62=4.25*1000=4250
Case 5B
Suppose balance payment of $ 700 actually made on 5 April when the exchange rate was Rs 64/$
View answer
10-Feb
MAX LTD USA DR 18000
TO BANK 18000
16-Feb
PUR DR 62000
TO MAX LTD USA 62000
16-Feb
MAX LTD USA DR 600
TO FOREIGN EXCH. FLUCTUATION 600
31-Mar
FOREIGN EXCH. FLUCTUATION DR 2975
TO MAX LTD USA 2975
05-Apr
MAX LTD USA DR 44800
TO BANK 44800
05-Apr
MAX LTD USA DR 1575
TO FOREIGN EXCH. FLUCTUATION 1575