Forex gain/loss

This query is : Resolved

RITESH B. PANCHAL (Querist)
Follow

30 May 2019 Dear Sir/Madam,

There is debit balance of Rs.13,450/- as forex gain in party's ledger.
What does it mean ?
Do we have to collect it from party as receivable ?
Please advise.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

06 June 2019 you need to transfer the same to P & L

RITESH B. PANCHAL

RITESH B. PANCHAL (Querist)
Follow

06 June 2019 Dear Amol Sir,
Please advise how to transfer to P & L in order to make party's ledger nil.

Upgrade to CAclubindia Pro. Subscribe Now!

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

07 June 2019 You said you have debit balance of Rs.13450/-. It means there seems to be loss.
Debit Foreign exchange Loss
Credit Party's account

RITESH B. PANCHAL

RITESH B. PANCHAL (Querist)
Follow

07 June 2019 Dear Amol Sir,
In our books of account, entry is as below.
Party Account ......Dr
Forex Gain/Loss ......Cr.
So there's confusion what to do.
Please advise.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

07 June 2019 then what is the issue?
The gain is already transferred to P & L
Why is it showing debit balance of 13450/-

RITESH B. PANCHAL

RITESH B. PANCHAL (Querist)
Follow

07 June 2019 How to nullify party's ledger because it's not receivable ?

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

07 June 2019 then may be, the entry is recorded twice.

Upgrade to CAclubindia Pro. Subscribe Now!

RITESH B. PANCHAL

RITESH B. PANCHAL (Querist)
Follow