30 April 2014
Dear Experts, A company has imported some store consumables from Korea,having exchange gain of RS 2000 on purchases of 200000. can company can pass a jv entry :
forex gain A/c dr. 2000 To stores& spheres A/c 2000
01 May 2014
Foreign Exchange Gain recognised on purchase has to be credited to Profit & Loss Accounts.
Refer Accounting Standard 11.
Exchange differences arising on the settlement of monetary items or on reporting an enterprise’s monetary items at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, should be recognised as income or as expenses in the period in which they arise.
CAclubindia
