Treatment of Advances in Foreign Currency at 31st March

This query is : Resolved

Varshney Gupta (Querist)
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22 May 2024 Suppose
I have imported goods on 1.10.2023 by giving advance of 10000 $ @ Rs.50 per $ i.e Rs. 500000 and we received a goods worth 9000 $ @ Rs.45 per $ i.e Rs.405000 ( this entry was made by considering the Exchange rate mentioned in Bill of entry ) on 23.11.2023 we have booked a profit of Rs. 45000 i.e ( 9000 x 5 ) on 23.11.2023. But what about aur extra payment of 1000 $ to our supplier. At 31.3.24 closing rate is say Rs. 51 per $

What is the treatment of the advance in our balance sheet BS and how it affect our PL

As per AS-11 ???

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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23 May 2024 Advance paid at Rs 50 per $ you can't book any profit. Book foreign exchange loss of 45,000.
Book foreign exchange gain of Rs 1000 on closing balance of 1000 $.

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