Our directors are going to abroad for a business trip. They carried AED.20,000 to meet the expenses in cash. Once they are back, the remaining balance is AED.5000 only. Please advise on the accounting treatment.
Initial Balance - AED.20000 ( I think spot rate at the time of buying currency by the bank) Expenses AED.15000 ( May i know, which rate we need to book the expenses) Balance amount- AED.5000 ( Rs. 1 get gain on currency valuation, while currecy return to local bank in India)
If the company chose to hold the currency for this Fin year, which rate should i show in the accounts)
29 September 2022
Expenses AED.15000 book at spot rate buying currency. Book gain in foreign currency separately. Show 31st March rate in case of holding.
CAclubindia
