Hi.. i am doing audit of a company who import goods .
Date of Bill of Lading - 26.03.2011 .. 1USD = Rs. 45.71
Payment Date - 31.03.11.. 1 USD @ Rs 44.81..
31.03.11 Closing Rate.. 1USD = Rs. 44.90
Date on which goods are received in godown - 02.05.11
Now the question is that company had made a purchase on 26.03.11 and since the goods are not received it would be shown as Stock in transit and hence company cannot book it as a purchase.
Now my question is how the exchange difference would be calculated in the above circumstances.
Moreover, when they will book purchase in may they would book it at the rate of Bill of lading. So how would they calculate exchange difference in that case also.
So hence i want that how much amount will come as exchange difference in 2010-11 and 2011-12.
Thanking you in anticipation and i would highly appreciate a prompt reply as it is very urgent.
CAclubindia
