Vikram (Proprietor) (100 Points)
02 May 2010Hi,
As a proprietorship firm, If I invoice my international clients for services provided (like web designing) in US dollars and the payment is received in US dollars either via wire transfer/ US dollar Cheque/ or via Paypal (Payment processor), do I need to keep seperate invoice series for usd invoices? Also is it legal to make invoices in other currencies? At what conversion rate should I post the accounting entries?
ayyappa
(CA Final)
(81 Points)
Replied 10 May 2010
| Originally posted by : Vikram | ||
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Hi, As a proprietorship firm, If I invoice my international clients for services provided (like web designing) in US dollars and the payment is received in US dollars either via wire transfer/ US dollar Cheque/ or via Paypal (Payment processor), do I need to keep seperate invoice series for usd invoices? Also is it legal to make invoices in other currencies? At what conversion rate should I post the accounting entries? |
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As per the AS-11, Any Transactions in foreign currency has to be reported in local currency. As the buying and selling of goods and services is integral transaction which is should be recorded at the date on transaction occured. The difference between the the transaction fluctuations have to be charged to the profit and loss account.
CAclubindia
