Topics
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
Related QuestionsVIEW ALL [9]
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. |
1.12.2017 | 18,000 | 64.00 |
1.2.2018 | 12,000 | 66.00 |
10.3.2018 | 12,000 | 63.00 |
17.4.2018 | 10,000 | 66.00 |
19.5.2018 | 8,000 | 67.00 |
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) |
10.09.2017 | 66.25 |
10.10.2017 | 67.00 |
10.11.2017 | 67.50 |
10.12.2017 | 67.70 |
Prepare Foreign Exchange Fluctuation Account in the books of PQR Ltd.