for example : if I have a customer sruthi ,IAM selling the goods to her on 28.1.2021.but my customer pay the money on Feb 1.2.2021.....
in my books which of date I have to take and enter my sales entry recording.......
another think ,how to find out the exchange loss or gain in foreign exchange rates with examples
could you please tell me these two queries..
2 Replies
CA. Sourav Sarkar
(Chartered Accountant )
(24583 Points)
Replied 28 January 2021
You should show the sale entry on 28.1.21
Abdul Razak
(Accountant)
(95 Points)
Replied 28 January 2021
When Credit Sales
28-01-2021 Sruthi A/C Dr (Under head - Sundry Debtors )
To Sales A/C (Under head - Direct Income)
(Being Goods sold to Sruthi Invoice. No.......... Dated.....)
When receive payment
01-02-2021 Cash/Bank A/C Dr
To Sruthi A/C
(Being Cash Received against Invoice. No......... Dated........)
When Cash Sales
01-02-2021 Cash A/C Dr
To Sales A/C
(Being Cash Received against Invoice. No......... Dated........)
Accrual Basis Concept :-
Revenues are recorded when earned.
Expenses are recorded when incurred.
*********************************************
Foreign Exchange gain & loss :-
Foreign Exchange gain & loss occur when purchase/sales of goods in foreign currency due to currency difference (Fluctuating) .
Purchasing Equipment from GBP 7000/- worth.
Rate - GBP to USD 1.30
USD 1.30 (7000 x 1.30 = 9100/-)
Purchase of Equipment
Equipment A/C Dr 9100/-
To Supplier A/C 9100/-
When payment
Rate GBP to USD 1.25
USD 1.25 (7000 X 1.25 = 8750/-)
Currency Difference 9000 minus 8750 = 350/-
Supplier A/C Dr 9100
To Foreign Exchange Gain A/C 350
To Bank A/C 8750
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