Question

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.

Answer 1

In the Books of PQR Ltd.
Foreing Exchange Fluctuation A/c 

Date	Particulars	Rs.	Date	Particulars	Rs.
10.9.17	To Bank A/c	1,25.000	31.3.18	By Profit & Loss A/c	8,45,000
	( 1,00,000 x 1.25)
10.10.17	To Bank A/c	2,00,000
	(l,00,000 x 2)
10.11.17	To Bank A/c	2,50,000
	(1,00,000 x 2.50)
10.12.17	To Bank A/c	2,70,000
	(1,00,000 x 2.70)
		8,45,000			8,45,000