20 June 2010
Dear Experts, Please give me answers for this query, my earlier query relating to this is still pending thats why i have again posted it.Please do take time in reading this and share your knowledge.
If the company makes an export sales for 1 lakh dollars on receiving the sale order dt. 1st march 2010, but Bill of Entry is on 20th march 2010. But the company takes an forward rate on 1st march 2010 itself to reduce the currency rate fluctuation at 40 rs. per u.s. dollar. You also have the data for forward rate on 20th march 2010 at rs. 41 per u.s. dollar.
On 20th April 2010 the company receives payment for 1 lakh dollars. The spot rate on 20th April per u.s. dollar is 42 rs. per u.s. dollar. The rate on 31st march 2010 is rs. 39 per u.s. dollar.
Please provide me the entries to be passed in the books of accounts and also in the financial statements.
21 June 2010
Sir is it not the bill of entry date to be considered for booking sales incase of export? Thanks for answering my query With regards, Rajesh.
21 June 2010
Dear Rajesh Normally export sale is booked on the date of Bill of export. So in my opinion the entries are:
(1) Debtor 41 lac To sales 41 lac
Now the Company has taken forward of 1 lac usd. So both forward & debtor will be reinstated on 31.03.2009
Claims receivable 2 lac To Debtors 2 lac
On 1 april this entry will be reversed
On 20th April 1 lac usd received. But USd will go to the Bank from which you have taken forward & that bank will pay you forward rate irrespective of the spot rate of 20 march
CAclubindia
