Hi, A private ltd.co. . has received share application money to the tune of $ 3 million from its overseas investors. Now the private co. wants to refund back the said money. When the money was received the FX rate was 53 but now it is 48. How the difference of Rs. 3 be treated, should it be through PL or directly in Equity.
6 Replies
CA.Varalakshmi.M
(Manager-Finance)
(482 Points)
Replied 10 July 2012
S it is through profit and loss a/c
mike
(MTO)
(43 Points)
Replied 10 July 2012
Not directly to equity at all. It should must be through Profit & Loss Account.
SHIJO PAUL
(ASST.MANAGER - FINANCE)
(22 Points)
Replied 11 July 2012
I think it must be accounted in the profit & loss account as income from exchange difference.
work is worship
(Service)
(2728 Points)
Replied 14 July 2012
According to me it should be treated as Capital Loss, it cannot be a revenue loss.
Please comment.
mike
(MTO)
(43 Points)
Replied 24 August 2012
| Originally posted by : SHIJO PAUL | ||
 |
I think it must be accounted in the profit & loss merchant account as income from exchange difference. |
 |
Not directly to equity at all. It should must be through Profit & Loss Account.
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