Question

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.

Answer 1

In the Books of Priyanka Ltd.
Journal

Date	No.	Particulars	Dr.Rs	Cr.Rs
2016-17
10.1.17	1	Jerry Trading Co. A/c ($ 90,000 x 69.50)          Dr	62,55,000
		To Export Sale A/c		62,55,000
		(Being goods exported)
25.1.17	2	Bank A/c ($ 25ooo x 69.75)                          Dr	1.7,43,750
		To Jerry Trading Co.A/c ($ 25,000 x 69.50)		17,37,500
		To Exchange Difference A/c ($ 25,000 x 0.25)		6,250
		(Being part payment)
23.2.17	3	Bank A/c ($ 24,000 x 68.90)                      Dr.	16,53,600
		Exchange Difference A/c($ 24,000 x 0.60) Dr.	14,400
		To Jerry Trading Co. A/c ($ 24,000 x 69.50)		16,68,000
		(Being part payment)
24.3.17	4	Bank A/c ($ 24,000 x 68.60)                      Dr	16,46,400
		Exchange Difference A/c ($ 24,000 x 0.90)      Dr	21,600
		To Jerry Trading Co. A/c ($ 24,000 x 69.50)		16,68,000
31.3.17	5	Exchange Difference A/c ($ 17,000 x 0.75)      Dr.	12,750
		To Jerry Trading Co. A/c		12,750
		(Being loss on valuation Rs. 69.50-Rs. 68.75. =Rs 0.75 per $ recorded)
31.3.17	6	Profit & Loss A/c        Dr	42,500
		To Exchange Difference A/c		42,500
		[Being balance (14,400 + 21,600 + 12,750 -6,250) transferred at year end ]
2017-18 28.4-17	7	Bank Ale($ 17,000 x 68.90)                     Dr	11,71,300
		To Jerry Trading Co A/c ($17,000 x 68.75)		11,68,750
		To Exchange Difference A/c ($17,000 x 0.15)		2,550
		(Being full and final settlement)
31.3.18	8	Exchange Difference A/c  Dr.	2,550
		To Profit and Loss A/c		2,550
		(Being balance transferred at year end)