Exchange rate fluctuation

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Poonam Lohiya (Querist)
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24 June 2014 sir i import goods. i make the entry of impor t taking us dollar rate of the receiving date. But i made payment afterwards by taking that day exchange rate. then what should be the exact accounting entry for exhcnage rate fluctuation

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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24 June 2014 Hi Poonam,

Accounting entries will be as under,

Foreign exchange gain/loss A/c. Dr. XXX
To Party A/c. (Creditor) XXX
(in case of foreign exch. loss)

Party A/c. (Creditor) Dr.XXX
To Foreign exchange gain/loss A/c XXX
(in case of foreign exch. gain)