Which exchange rate to be used
This query is : Open
06 November 2012
Dear sir,
We are clearing forwarding agent , I have one query suppose
Invoice raised by hongkong party to us for (1000 USD) dt. 21.4.2012
on that time exchange rate was suppose ( rs. 52/-)
but we have booked invoices on 30.04.2012 because we received on 30.04.2012
on that time exchange rate was suppose rs. ( 54/- )
so which rate I used for translation & why ?
expert pls reply
thanks
We are clearing forwarding agent , I have one query suppose
Invoice raised by hongkong party to us for (1000 USD) dt. 21.4.2012
on that time exchange rate was suppose ( rs. 52/-)
but we have booked invoices on 30.04.2012 because we received on 30.04.2012
on that time exchange rate was suppose rs. ( 54/- )
so which rate I used for translation & why ?
expert pls reply
thanks
07 November 2012
The conversion rate is to be applied of the date of Invoice. Which is in your case @ Rs. 54/-.
"so which rate I used for translation & why?" what is your exact meaning of 'translation'.
Perhaps you wish to say as under: SO WHICH RATE I SHOULD USE FOR CONVERSION AND WHY.
"so which rate I used for translation & why?" what is your exact meaning of 'translation'.
Perhaps you wish to say as under: SO WHICH RATE I SHOULD USE FOR CONVERSION AND WHY.
Message likes :
1 times
07 November 2012
the rate to be used should be Rs.52/- and after that the difference (Rs.54-52 i.e. Rs.2/-) should be debited to profit & Loss account and credited to party
07 November 2012
dear bajaj sir,
suppose i received 3 invoices in the month of april for three different dates ( let 3, 8, 10 april & exchange rate for these dates are 52 , 53, 51)
but i forgot to booked all on the said date , & i booked all the 3 invoices on 30.04.2012 but exchange rate was taken by me was same of
invoice date i.e 52 , 53, 54 for each invoice )
is this correct or shall i take the exchange rate ( 54/- on 30.04.12 )
( beacause we maintain register on date wise so we can not pass the entry on same date ( on which invoice rcvd) but on month end date we can pass, because entries serial no. remain same and in it's continuous proportional )
pls. reply
suppose i received 3 invoices in the month of april for three different dates ( let 3, 8, 10 april & exchange rate for these dates are 52 , 53, 51)
but i forgot to booked all on the said date , & i booked all the 3 invoices on 30.04.2012 but exchange rate was taken by me was same of
invoice date i.e 52 , 53, 54 for each invoice )
is this correct or shall i take the exchange rate ( 54/- on 30.04.12 )
( beacause we maintain register on date wise so we can not pass the entry on same date ( on which invoice rcvd) but on month end date we can pass, because entries serial no. remain same and in it's continuous proportional )
pls. reply
07 November 2012
DEAR SIR ,
1.THE DATE 21.04.2012 IS COMING UNDER F.Y.2011-12 BUT YOU HAVE RECEIVED THE INVOICE ON 30.04.2012. SO THIS IS COMING UNDER F.Y.2012-13.
2. I THINK AS PER CONVENTION OF PRUDENCE IT IS GOOD TO BOOK AT RS 54/- INSTEAD OF RS 52/- .ANYWAYS WHEN YOU ARE MAKING THE FINAL PAYMENT YOU WILL HAVE TO PAY AT THAT EXCHANGE RATE WHICH IS THERE ON PAYMENT DATE .
3. SO WHAT I SUGGEST IS THAT BOOK IT IN YOUR BOOKS OF A/C UNDER EXCHANGE RATE OF RS 54 ON 30.04.2012 AND BOOK THE DIFFERENCE IF ANY ON PAYMENT DATE OF INVOICE IF EXCHANGE RATE GOES HIGHER OR LOWER THAN RS 54.
1.THE DATE 21.04.2012 IS COMING UNDER F.Y.2011-12 BUT YOU HAVE RECEIVED THE INVOICE ON 30.04.2012. SO THIS IS COMING UNDER F.Y.2012-13.
2. I THINK AS PER CONVENTION OF PRUDENCE IT IS GOOD TO BOOK AT RS 54/- INSTEAD OF RS 52/- .ANYWAYS WHEN YOU ARE MAKING THE FINAL PAYMENT YOU WILL HAVE TO PAY AT THAT EXCHANGE RATE WHICH IS THERE ON PAYMENT DATE .
3. SO WHAT I SUGGEST IS THAT BOOK IT IN YOUR BOOKS OF A/C UNDER EXCHANGE RATE OF RS 54 ON 30.04.2012 AND BOOK THE DIFFERENCE IF ANY ON PAYMENT DATE OF INVOICE IF EXCHANGE RATE GOES HIGHER OR LOWER THAN RS 54.
07 November 2012
Mr. Basu how can 21.04.2012 comes in FY 2011-12
fy 2011-12 is from 01.04.2011 to 31.03.2012
fy 2011-12 is from 01.04.2011 to 31.03.2012
07 November 2012
Mr Negi
The well known practice is that conversion rate is taken of the date of invoicing. On 30.4.2012 you said rate was Rs. 54/- so it should be @ 54.00. Accounting Standard or norms also say thus. Further FLUCTUATION OF CURRENCY account is also associated with such accounting procedures.
For example and demonstration please contact at 'contact@vkbajaj.co.in
@Mr Sethia,
Please revisit your first answer at 52 and balance 2 afterwards. Please improve your answer as self efforts are always rewarding.
I request all experts to keep this query OPEN and not as RESOLVED till Mr Negi is satisfied. THANKS
The well known practice is that conversion rate is taken of the date of invoicing. On 30.4.2012 you said rate was Rs. 54/- so it should be @ 54.00. Accounting Standard or norms also say thus. Further FLUCTUATION OF CURRENCY account is also associated with such accounting procedures.
For example and demonstration please contact at 'contact@vkbajaj.co.in
@Mr Sethia,
Please revisit your first answer at 52 and balance 2 afterwards. Please improve your answer as self efforts are always rewarding.
I request all experts to keep this query OPEN and not as RESOLVED till Mr Negi is satisfied. THANKS
08 November 2012
@ mr Bajaj
the Date of invoicing here is 21.04.2012
therefore as per the accounting norms it should be booked @ rs.52/- and then the fluctuation is accounted.
the Date of invoicing here is 21.04.2012
therefore as per the accounting norms it should be booked @ rs.52/- and then the fluctuation is accounted.
08 November 2012
Mr Sethia
Mr Negi in his question says Invoiced on 30.4.2012. Please revisit his question and note it.
Mr Negi in his question says Invoiced on 30.4.2012. Please revisit his question and note it.
08 November 2012
again i want to clear
invoice
dated 3.4.2012
8.4.2012
10.4.2012
and exchange rate was
3.4.2012 (52/-)
8.4.2012 (53/-)
10.4.2012 (51/-)
but i booked all the invoice on 30.04.2012
and rate suppose ( 54/- )
now my question is
i received all the bill on time but i forgot to booked all the bill on
time
& i booked on 30.04.2012 so what will be
the rate
thanks
invoice
dated 3.4.2012
8.4.2012
10.4.2012
and exchange rate was
3.4.2012 (52/-)
8.4.2012 (53/-)
10.4.2012 (51/-)
but i booked all the invoice on 30.04.2012
and rate suppose ( 54/- )
now my question is
i received all the bill on time but i forgot to booked all the bill on
time
& i booked on 30.04.2012 so what will be
the rate
thanks
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