21 October 2010
what is the cost of purchase in case of import from outside india when we made advance payment for the same.eg we made payment of $30 @40 Rs =Rs 1200 on 30.06.2010 and we get the delivery on 27.07.2010 when the rate of $ is 45 Rs means total Rs 1350. so what is the amount should be booked in books of accounts is Rs !200 or RS 1350.
21 October 2010
WHY WE ACCOUNTED Rs. 1350 IF WE ALREADY MADE THE PAYMENT IN ADVANCE BECAUSE AS PER AS-11 IN CASE OF FORWARD EXCHANGE RATE THERE IS NO FLUCTUATION LOSS OR PROFIT AND GIVE EXPLANATION IN SUPPORT OF OUR ANSWER
22 October 2010
as-11 says that if you made payment after purchase means purchase on credit then there should be a exchange loss it does not talk abt in case if we made a advance payment of purchase. and if it is written can you plz give me the para no
I think there in no need to write. I paid you paid in advance and subsequently there is no increase/decrease in cost. the cost would be the actual amount you have paid.
CAclubindia
