Is it necessary to book exchange gain

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Ravi Kumar Rajgaria (Querist)
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13 March 2012 Is it necessary to book Exchange gain as per closing rate of usd on 31.03.12?

We booked Advance sale on Mr.X for $10000 @ Rs.47/-.Payment will be received in next FY after March. Suppose usd rate as on 31.03.12 will be Rs.50/-.

It is happening a notional gain of 3/- per usd. Is it necessary to book the exchange gain as per Accounting statndard?

swasti

swasti (Expert)
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13 March 2012 If books are maintained on accrual basis then the exchange fluctuation gain should be booked and the effect should be given in the sales account.