Foriegn exchange loss

This query is : Resolved

SAMIR DESAI (Querist)
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29 February 2012 DEar Sir,

I raised bill of service charge of $100 @52.00 & now i received this bill payment $100@50.00 than $100*2=200 Rs. Loss how pass entry

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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29 February 2012 Amount of loss charge to the P&L Account.
OM SAI SRI SAI JAI JAI SAI

SAMIR DESAI

SAMIR DESAI (Querist)
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29 February 2012 this amount will be cosider as expences

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Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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29 February 2012 Yes it will be consider as expenses.
OM SAI SRI SAI JAI JAI SAI

Mihir Doshi

Mihir Doshi (Expert)
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29 February 2012 When Bill is raised:
Party A/c Dr 5200
To Income A/c 5200

Now on receipt of payment
Bank Ac DR 5000
FX Loss Ac DR 200(it goes to P&L)
To Party A/c 5200

Hope your query is resolved

Thanks
Mihir Doshi