25 June 2008
Suppose the company have made an export sale in FY 2007-2008 and received the money in dollars in same accounting year.
In FY 2008-09, the company have made another export sale to the above party.
Party has now rejected the goods sold earlier in FY 2007-08 and has deducted the entire export sale amount in dollars in this FY year from the receipt of the another export sale made in the FY 2008-09.
What accounting entry is to be passed in FY 2008-09 as the year FY 2007-08 is already closed?
Whether the foreign exchange gain/loss made in FY 2007-08 needs to be reversed or linked with the gain /loss in FY 2008-09?
CAclubindia
