For an export firm, if the sale bill is of USD 100000 and the realisation amount is USD 99888 and the exchange rate on realisation date is 60 then what would be the entry for sale. Should he record USD 100000 or USD 99888 and what would be rate for conversion to Rs.?
2 Replies
Shivani Mittal
(Practice)
(425 Points)
Replied 23 November 2013
Is the difference of USD 112/- in the nature of trade discount?
Rajesh
(Service )
(7576 Points)
Replied 28 November 2013
Check the difference with your customer's bank as well as your bank. May be some charges was deducted by both the bank. If there are any charges deduction by bank then you should credit USD 100000 to customer account and debit bank charges from difference amount of USD 112/-.
As concern to the Exchange rate you shoud Dr / Cr. the differencial amount of Exchange rate difference.
Rajesh
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