20 November 2010
As per AS-11 exchange rate to be adopted for foreign transactions is on the date Transaction. Wheather this is applicable to the 100% advance made against proforma invoice ?
26 November 2010
If against the proforma invoice you are required to make the payment then you will show the party to whom the payment is made as debtors in your balancesheet because you cannot book the expense/asset on the basis of proforma invoice. For the purpose of conversion of debtors balance, the exchange rate exisiting on the date of balance sheet is taken into consideration.
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