Foreign remittance

This query is : Resolved

Shruti Mishra (Querist)
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19 August 2011 i have client, who remits sum to their parties abroad.

the invoice inr value and whatever payment tht has been made differs to rate difference on 2 different dates.

in this case, what shud i do. shud i book the extra payment under other ledger (foreign exchng diff)

or shud i book it as entire purchase and dont get into bifurcation?? pls advice.

i m confused

Shruti Mishra

Shruti Mishra (Querist)
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19 August 2011 eg: invoice raised by xyz in u.k on 14.12.10 and payment made on 20.12.10

how is the difference to be treated as?

CA Navin Jain

CA Navin Jain (Expert)
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19 August 2011 Need to Follow accounting Standard- 11

Hence, foreign exchange fluctuation transferred to separate head i.e. foreign currency fluctuation

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