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Accounting entry of dollar account

Bhavesh (Accounts) (158 Points)

01 June 2023

Hello friends, in our firm we are using dollar account now want to know how the same is tallied with INR with daily closing balance. what accounting entry is pass for dollar and erd entries and how to tally the dollar account with INR.

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prasad Nilugal ( GST Practitioner & Accounts ) (14846 Points)
Replied 01 June 2023

Create two ledgers to tally Dollar with INR
1) Exchange Difference Gain A/c , under Indirect Income, P & L A/c

2) Exchange Difference Loss A/c , under Indirect Expenses, P & L A/c .

If any Gain in exchange difference, credit to profit and loss A/c , any Loss in exchange difference debit to P&L .