Accounting entry of sale of foreign currency by directors

This query is : Resolved

Johnson Anthonidas (Querist)
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05 March 2019 Company purchased foreign currency and accounted same as Foreign travelling expenses of directors by passing a board resolution that directors are allowed to use upto 500$ per day for as travelling expenses

When subsequently the director sold the foreign current whether the same to be credited to Director travelling expenses or profit/loss on foreign currency to be accounted separately

Regards & Thanks

CA Abhishek Goyal

CA Abhishek Goyal (Expert)
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05 March 2019 In my view, It should be directly credited to Travelling exps only. as $ was specifically purchased for travelling exps only. So if we see the treatment of foreign travel exps, whole $ is accounted as expense and on sale of such $s, it should be credited to Travelling exps.

Thanks.

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