Question

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.

Answer 1

Journal of Purab Ltd.

Date	No.	Particulars	Dr.	Cr.
1.3.18	1	Paschim Ltd. A/c         Dr	62,00,000
		to Export Sales A/c		62,00,000
		($ 1,00,000 x 62) (Being sales recorded)
5.3.18	2	Bank A/c (40,000 x 61)Dr.
		Foreign Exchange Fluctuation A/c ($ 40,000 x 1)
		To Paschim Ltd. A/c ( 40,000 x  62)
		(Being part of the a1nount received @ 1$ =Rs.61)
18.3.18	3	Bank A/c ($ 35,000 x 63) Dr	22,05,000
		To Paschim Ltd. A/c ($35,000 x 62)		21 ,70,000
		To Foreign Exchange Fluctuation A/c(35,000x1)		35,000
		(Being part of the amoμnt received @ 1 $= 63)
30.3.18	4	Bank A/c ($ 25,000 x 60) Dr.	15,00,000
		Foreign Exchange Fluctuation A/c (25,000 x 2) Dr.	50,000
		To Paschim Ltd A/c (25,000 x 62)		15,50,000
		(Being balance amount received @ 1$= Rs 62)
31.3.18	5	Profit and Loss A/c    Dr.	55,000
		To Foreign Exchange Fluctuation A/c		55,000
		(Being  foreign exchange  fluctuation transferred to Profit and Loss A/c)