Exchange Rate Difference

This query is : Resolved

Ravi (Querist)
Follow

13 February 2009 I am working in Export house. I want to know that if we books export bill in April 2008 and payment received in May 2009 then where the applicable Exchange rate difference in F.Y. 2008-09 or 2009-10. also
Which rate on 31 March enter and then what is the rate on payment received we calculate, please help me also give the example of entry.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
Follow

24 September 2011 On 31st March, the balance in the debtors account will be reinstated at the exchange prevailing on 31st March. Any difference shall be treated as exchange difference and transferred to P&L.

On the settlement date, receipt will be recorded at the rate prevailing on the date of the receipt. Any difference shall be treated as exchange difference and transferred to P&L.