Foreign exchange gain / loss journal entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2012 Dear Friends,
I want to know about what is the Head of Account in Tally for Foreign Exchange gain is it "Indirect income". and then Foreign Exchange Loss is it "Indirect Expense"

OR
Foreign Exchange gain / Loss and the Head of account - Indirect Expense

Please tell me the answer.

Narasimha

Narasimha (Expert)
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03 August 2012 Foreign Exchange gain is profit to us so its increase profit the entry is

P&L a/c dr
to Foreign exchange diff a/c

If it is Loss the entry like

Foreign exchange diff a/c dr
to P&L a/c

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CA BHARATH KUMAR

CA BHARATH KUMAR (Expert)
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03 August 2012 if loss;
Foreign exchange Gain/loss A/c dr
To Profit/loss Account
If Gain:
Profit/Loss Account Dr
To Foreign Exchange Gain/Loss A/c

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Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2012 Thank you
What is the head of a/c in tally for Foreign exchange gain / loss . Is it indirect expense?
I made the ledger account for gain and loss in a single Ledger like,
Foreign Exchange Gain / Loss under indirect expense.
Kindly tell me the right.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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07 August 2012 Open a single ledger account - Foreign Exchange Fluctuation under Indirect Expense.

At the end of the year change/keep the classification on the basis of the balance in the account.

If there is profit, change to Indirect Income otherwise keep as Indirect Expense.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2012 Thank you Siddharth and also Narasimha and Bharath