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if foregin exchange diffrence exit in bank a/c & debetors a/c on last day of financial year coz of exchange flatuation, can we consider this as income of PGBP.
Exp. lets EFGC a/c have 20000 $.we made entry in books with exchange rate 1$=45. accordingly amount shown in balance sheet Rs 900000. but on 31st march exchange rate was 1$=50.what will i do for income tax purpose.
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Yes its as per AS 11 |
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Yes I totally agree with anita arora |
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it should be valued @50 at year end |
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Hey Buddy
As per the provision of Accounting Statndard 11, if exchange arise on the monetary item at the end of year it should be booked in the profit and loss account as per the para 13 of AS 11. Now Monetary item means the assets and lialbilty whose relisation or payable is to be fixed.
So as per the para 13 the exchange differece on reporting date on monetary item should be recorded in the income or expenses as the case may be. |
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