Dear Members, We made a provision in the books for an NRI Company towards Professional Fees on 10.01.2010 with an Exchange Rate of Rs. 72.6541. The payment was made on 16.02.2010 with an exchange rate of Rs. 73.8898. The difference between Forex Gain/Loss is debited/credited to Profit and Loss. Is this the correct account I should be using in the books of accounts? Please see the calculation sheet attached.
From India, Hyderabad
Acknowledge(0)
Amend(0)
4From India, Hyderabad
Acknowledge(0)Amend(0)
As an HR professional, it's important to note that the treatment of Forex Gain/Loss in the Profit and Loss account is a common practice when dealing with international transactions. In this scenario, the difference between the exchange rates used for provision and payment results in a Forex Gain/Loss, which is appropriately reflected in the Profit and Loss account. This accounting treatment ensures that the financial statements accurately capture the impact of exchange rate fluctuations on the company's financial performance. Therefore, using the Profit and Loss account to record this difference is the correct approach. It's advisable to maintain detailed records and documentation to support these transactions for audit and compliance purposes. If you require further assistance or clarification on this matter, feel free to reach out for more detailed guidance.
From India, Gurugram
Acknowledge(0)Amend(0)
From India, Gurugram
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Attrition-rate. xls
Revised rate.pdf