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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. - Financial Accounting(Financial Accounting and Auditing 9)

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.

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Solution

Journal Entries
In the Books of D Ltd.

Date Particulars L.F Debit Credit
2018-19        
1st Aug. B.Ltd.A/c [$2,30,000 x 50:50]   1,16,15,000  
  To Sales A/c     1,16,15,000
  (Being goods sold on credit)      
1st Sept. Bank A/c [$ 09,000 x 51.50]   35,53,500  
  To FFF A/c      69,000
  To B Ltd. A/C ( 69,000 x 50.50)     34,84,500
  (Being 1st Installment received)      
10th Sept. Bank A/c ($ 50,000 x 49)   24,50,000  
  FEF A/c   75,000  
  To B Ltd. A/c ($ 50,000 X 50:50)     25,25,000
  (Being 2nd Installment received)      
30th Sept. Bank A/c($ 1,11,000 x 52)                        Dr.   57,72,000  
  To FEF A/c     1,66,500
  To B Ltd. A/c ($ 1, 11,000 x 50.50)     56,05,500
  (Being land installment received)      
31st Mar. FEF A/c                      Dr.   1,60,500  
  To Profit & Loss A/c     1,60,500
  (Being FEF transferred to P & L A/c)      
Concept: Accounting of Transactions of Foreign Currency Problems
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