(Accounted in INR, for we would have purchased the currency) The travel is accounted as soon as the travelling person submits accounts which has to be within a reasonable time.
If any currency is returned(!)
Bank Dr. To Travel advance (INR)
the entry on the reverse is passed to the extent of return.
Accounting for loss or gain also takes place to the extent of return being the exchange difference with reference to the date at the time of advance.
Thank you for your reply but still I have a query regarding further on this. How do you analyze fully as a Schedule VI Reconciliation item as Foreign travel advance + Expenses + Forex Difference.
I have understood the analysis behind this explanation. Thanks a lot, your inputs are really encouraging to know in a better way and facilitates to understand to learn in a more clearer manner.
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