Foreign Currency a/c treatment

This query is : Resolved

Rider ride (Querist)
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19 December 2009 Hi

please tell me accounting treatment for this following events

Event 1-A Co. acquires acquires foreign currency ( say USD) in exchange for RS. ( say 1000 $ @ Rs. 50 per $ )

Event 2-Now they release this FC to one of their marketing officer for his foreign tour under imprest system. Say Co released 1000 $.

Event 3-One month later after touring the traveller surrendered 100$ and expense sheet for 900$.

Event 4 - Co. Exchanges 100 $ for Rs 48 .

Please write a/c entries for all 4 events !

thanks

S.Siju Gemin

S.Siju Gemin (Expert)
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21 December 2009 1)A Co. acquires acquires foreign currency ( say USD) in exchange for RS. ( say 1000 $ @ Rs. 50 per $ )

Ans: Dr.Cash-USD Rs.50000
Cr.Bank Rs.50000

2)Now they release this FC to one of their marketing officer for his foreign tour under imprest system. Say Co released 1000 $.

Ans: Dr.Staff advance A Rs.50000
Cr.Cash-USD Rs.50000

3)One month later after touring the traveller surrendered 100$ and expense sheet for 900$.

Ans:Dr.Cash-USD Rs.5000
Dr.Tour expenses Rs.45000
Cr.Staff Advance A Rs.50000

4) Co. Exchanges 100 $ for Rs 48 .

Ans:Dr.Bank Rs.4800
Dr.Diff in Foriegn exh Rs. 200
Cr.Cash-USD Rs.5000

Rider ride

Rider ride (Querist)
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22 December 2009 hello Gemin
Pl. tell that whether Ex. Diff should be booked in the third entry while dr. "Cash-USD a/c" .Say $=Rs.49 then the entry would be-

Cash USD dr. 4900
Ex. Diff.dr. 100
Tour expenses 45000
To staff adv. 50000

Since the co. is recording the surrendered USD the above entry should be correct. What you say?
Consequently 4th entry will also be changed !
please post your valuable suggestion.

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