Amalgamation, Absorption and External Reconstruction (Excluding Intercompany Holdings)
Accounting of Transactions of Foreign Currency
- Accounting of Transactions of Foreign Currency
- Purchase of Goods in Foreign Currency
- Account for Foreign Currency Transactions
- Purchase of Fixed Assets in Foreign Currency
- Foreign Currency Loan
- Foreign Exchange Accounting
- Accounting of Transactions of Foreign Currency Problems
- Statement of Affairs and Deficiency Account Problems
Liquidation of Companies
Underwriting of Shares and Debentures
Accounting for Limited Liability Partnership
Pass necessary Journal Entries in the books of 'N' of Nashik based on AS 11 from the following transactions :
A machine was imported on 20th January, 2018 from Van. Chan of China for US $ 2,00,000. The payment for the same was made as follows :
US $ 1,50,000 on 27th February 2018.
US $ 50,000 on 15th March 2018.
The Exchange Rate for $ 1 Was as follows :
On 20th January, 2018 Rs. 65.60
On 27th February, 2018. Rs. 66.50
On 15th March, 2018 Rs.66.80
N follows financial year as accounting year.
On 31st October 2017. Mis. Raman Industries Ltd: exported goods worth US $ 60,000 to Mis. WMS Co. USA. Mls WMS C o. paid the instalment as under:
|Date||Instalments in US $||Exchanee Rate per US $Rs.|
Additional Information :
1. Exchange rate as on 31.10.2017 was Rs, 65.00 per US $ and as on 31.3.2018 was Rs 64.00 per US $.
2. Accounts are closed on 31st March every year.
3. Apply AS-11.
Prepare WMS's Co. Account U.S.A~ in the books of Mis. Raman Industries Ltd. for the year ended 31.3.2018.
Purab Ltd. Exported good to Paschim Ltd. as on 1st March, 2018 for Rs. 1,00,000 when the exchange rate was 1 BS $ = Rs. 62. The amount was received in three instalment as under :
|Date||Instalments in US $||Rate of exchange|
|5th March, 2018||40,000||Rs.61|
|1 thMarch, 2018||35,000||Rs.63|
|30th March, 2018||25,000||Rs.60|
Pass the Journal Entries for the above transactions in the books of Purab Ltd. for the year ended 31st March, 2018.
Pass Journal entries for the following transactions in foreign currency in the books of 'Priyanka Ltd'. Priyanka Ltd exported goods to 'Jerry Trading Company', Germany worth US $ 90,000 on 10th January, 2017, on which date exchange rate of 1 US$ was Rs. 69.50. The payment for the same was received as under :
|Date of Payment||US $ Received||Exchane;eRate for 1 US $|
|25th January, 2011||25,000||Rs. 69.75|
|23rd February 2017||24,000||Rs. 68.90|
|24th March, 2017||24,000||Rs. 68.60|
|28th April 2017||17,000||Rs.68.90|
'Priyanka Ltd. closes its books on 31st March every year . The exchange rate on 31st March 2017 was 1 US $ 68.75.
PQR Ltdh imported. goods worth US @ 4,00,000 from M/s. Nelson & Co. of U.S.A'. on 1st August, 2017 when the exchange rate was Rs . 65.00. PQR Ltd. agreed to pay the amounts in four equal in stallments as under:
|Date||Exchange Rate (Rs)|
Prepare Foreign Exchange Fluctuation Account in the books of PQR Ltd.
Mr. Taitler purchased raw materials from Mis. Richo Inc. ·of USA on 1st October 2017 for US.$ 8,400. Amount to be paid in· four equal half yearly installments commencing from1st March,2018 along with [email protected] %. per annum:
Rate of exchange per US $ as on various dates was as follow :
1st October 2017 Rs. 65 per US$
31st March 2018 Rs.66 per US$
30th September 2018 Rs. 63 per US $
31st March 2019 Rs.64 per US$
Pass necessary Journal Entries in the books of Mr. Taitler for the years ended 31st March, 2018 and 31st March, 2019.·
D Ltd. of India has sold goods to B Ltd .of UK for $ 2,30,000 .on 1st August 2018. 30% was received on 1st September 2018. $50,000 was received on 10th September 2018.
Balance was received on·30th September 2018.
Foreign exchange rates
1st August 2018 $1 =Rs. 50.50
1st September2018 $1 ~Rs. 51.50
10th September 2018 $1 =Rs. 49
30th September $.1 =Rs. 52
Give entries in the books of D Ltd.
E Ltd. of Mumbai has sold goods worth $ 3,00,000 to B Ltd. of USA on 31st January 2018.
On 1st February 2018, $ 50,000 has been received.
On 1st March 2018, $ 80,000 has been received.
On 30th April 2018, $ 90,000 has been received.
Qn 31st May 2018, the balance has been received.
The accounting year ends on 31st March every year.
The exchange rates :
31st January.2018 '$1= Rs.51
1st February 2018 $1=Rs. 50
1st March2018 $1 =Rs.52
31st March2018 $1=Rs.51
30th April 2018 $1=Rs.49
31st May 2018 $1=Rs.53
Prepare ledger accounts iri·the books of E Ltd.