Fixed assets
This query is : Resolved
20 September 2011
ABC Ltd Purchase Plant & Machinery from USA
on 10/6/2010 @ USD-48=RS.1 at UDS-1000
On march 31 there is outstanding of UDS 400
and the rate USD-49=RS.1
how this will be reflect in balance sheet and P&L
Pls clearfy me the all effect
relpy
on 10/6/2010 @ USD-48=RS.1 at UDS-1000
On march 31 there is outstanding of UDS 400
and the rate USD-49=RS.1
how this will be reflect in balance sheet and P&L
Pls clearfy me the all effect
relpy
21 September 2011
Para 12 of AS 11 provides that payables are examples of monetary items.
Further, Para 11 provides that at each Balance Sheet date, foreign currency monetary items should be reported using the closing rate.
Also, Para 13 provides that exchange difference arising on reporting monetary items at rates different from those at which they were initially recorded should be recognised as income or expense.
Accordingly, the treatment will be as under:
Payable = USD 400* 49 = Rs. 19,600/-
Exchange loss (to be debited to P&L Account) = USD 400*1 = Rs. 400
In your books the payable account must be showing a balance of Rs. 19,200.
Pass the journal entry:
Exchange Loss Dr 400
To Payable 400
Further, Para 11 provides that at each Balance Sheet date, foreign currency monetary items should be reported using the closing rate.
Also, Para 13 provides that exchange difference arising on reporting monetary items at rates different from those at which they were initially recorded should be recognised as income or expense.
Accordingly, the treatment will be as under:
Payable = USD 400* 49 = Rs. 19,600/-
Exchange loss (to be debited to P&L Account) = USD 400*1 = Rs. 400
In your books the payable account must be showing a balance of Rs. 19,200.
Pass the journal entry:
Exchange Loss Dr 400
To Payable 400
29 September 2011
The expert has given the right entry
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund of AY 22-23
- Should I include march foreign salary received in April in my income for FY 2023-24?
- HSN Details in IFF/GSTR-1 & in GSTR 9
- Tax on capital gains revoked us 54f
- Inventory of finished goods
- Sale of property furniture sale
- Confusion around Form 26QB fields
- Clarification on Documentation of Paid-Up Capital Contribution by Directors
- GST APPLICABILITY ON POLLUTION CHECK SERVICE
- Applicability of Ind As to associate of associate
- 115TD on cancellation of 12A 80G Registration
- Declaration of Profit of foreign subsidiary in Indian holding Company
- Return material
- TDS is applicable on payment of Fix Meal
- Form ITC 04
- TDR receipts for agreement holder
- Point (III) 9 of GSTR-9C
- MIS MATCH OF INVOICE NUMBER
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
