Question

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 interest.@12 %. 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.·

Answer 1

IN THE BOOKS OF TAITLER
Journal

Date	No.	Particulars	Dr.	Cr.
2017-18 1.10.17	1	Purchase A/c (8,400 x 65) Dr	5,46,000
		To Richo Inc A/c		5,46,000
		(Being purchase of raw material)
31.3.18	2	Richo Inc A/c (2, 100 x 65)                                      Dr.	1,36,500
		Foreign Exchange Fluctuation A/c (2,100 x 1)                Dr.	2,100
		To Bank A/c (2,100 x 66)		1,38,600
		(Being first installment paid)
31.3.18	3	Interest A/c (8,400 x 6% x 66)	33,264
		To Bank A/c		33,264
		(Being interest paid)
31.3.18	4	Richo Inc A/c [(8,400- 2,100) x 1]	6,300
		To Foreign Exchange Fluctuation A/c		6,300
		(Being difference on closing balance)
31.3.18	5	Profit and Loss A/c    Dr	41,664
		To Foreign Exchange Fluctuation A/c		8,400
		To Interest A/c		33,264
		(Being expenses transferred at year-end)
2018-19 30.9.18	6.	Richo Inc Ale (2,100 x 66)	1,38,600
		To Foreign Exchange Fluctuation A/c (2,100 x 3)		6,300
		To Barik A/c(2,100 x  63)		1,32,300
		(Being second installment paid)
30.9.18	7.	Interest A/c  (6,300 x 6% x 63)	23,814
		To Bank A/c		23,814
		(Being interest paid)
3L3.19	8.	Richo Inc A/c (2, 100 x 66)	1,38,600
		To Foreign Exchange Fluctuation A/c (2,100 x 2)		4,200
		To Bank A/c (2,100 x 64)		1,34,400
		(Being third installment paid)
3L3.19	9.	Interest A/c (4,200 x 6% x 64)                              Dr.	16,128
		To Bank A/c		16,128
		(Being interest paid)
31.3.19	10.	Ricbo inc A/c [2,100 x (66 - 64)]                            Dr.	4,200
		To Foreign Exchange Fluctuation A/c		4,200
		(Being difference on closing baiance)
31.3.19	11.	Profit & Loss A/c        Dr.	39,942
		To Interest A/c		39,942
		(Being interest transferred at year-end)
31.3 .19	12	Foreign Exchange Fluctuation A/c            Dr	14,700
		To Profit & Loss A/c		14,700
		(Being interest transferred at year-end)