Last Year by mistake exchange rate fluctuation effect not given in the books of accounts. resulting figure of last year fluctuation is credit balance of Rs. 500000(Assume).
What is the Accounting procedure to deal it in current year. Whether i transfer it to profit and loss account or not.
30 April 2012
The foreign exchange fluctuation has to adjusted in the books of accounts in the current year as prior period item as per AS-5. You need to just pass a simple journal entry giving the effect.
30 April 2012
The foreign exchange fluctuation has to adjusted in the books of accounts in the current year as prior period item as per AS-5. You need to just pass a simple journal entry giving the effect.
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