Dear Expert,
A partnership firm purchased a machinery from U.S at 10000 dollars on 13.2.2009(ex rate rs.48.72). Ex rate on 31.3.2009 rs.50.95. The supplier was settled in subsequent year i.e on 12.6.2009 when the ex-rate was rs.47.41. Kindly clarify what is the amount at which the asset is to be recorded and liability recognised on the date of purchase, what is the entry to be passed on 31.3.2009 to bring the suppliers account to the balance sheet date ex rate? And what is the entry to be passed on the settlement date? Sec 43 A of the Income tax Act seems to be contrary to AS 11.
Regards
CA Sanjay Baheti
CAclubindia
