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. and Which rate applied in the entry, please help me also give the example of entry.
19 February 2009
You shall create debtors on the date of booking at the rate applicable on the date of transaction or date of bill of shipment whichever is earlier. As in your case f.y. has been changed hence on the closing of F.Y. you shall book profit or loss on a/c of foreign currency fluctuation i.e. rate booked minus rate on the closing of the year. Than on the date of payment you shall again book profit or loss on a/c of foreign currency fluctuation i.e. rate on the date of payment minus rate on the closing of the year.
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