03-04-2009, 09:33 PM
Just keep a dummy or contra account cash/asset accout in your ledger to transfer the difference in the dollar's rate and to show it in ballance sheet. Because you cannot show the ballance of dollars in balance sheet in terms of dollars. It must be transfered in terms of rupees for the purpose of financial reporting.
If you transfer $ 1000/- in rupee account and dollar rate is Rs 81/-
Rupee A/C ========= Dr.81,000/-
Dollars A/C========= Cr. $1000
Dummy or Contra A/c==== Cr. Rs 80,000/-
If any Bank Charges Deducted on conversion or transfer then following entry shall be passed.
Rupee A/C ========= Dr
Expense A/c=========Dr.
Dollars A/C========= Cr.
Dummy or Contra A/c==== Cr.
If you transfer $ 1000/- in rupee account and dollar rate is Rs 81/-
Rupee A/C ========= Dr.81,000/-
Dollars A/C========= Cr. $1000
Dummy or Contra A/c==== Cr. Rs 80,000/-
If any Bank Charges Deducted on conversion or transfer then following entry shall be passed.
Rupee A/C ========= Dr
Expense A/c=========Dr.
Dollars A/C========= Cr.
Dummy or Contra A/c==== Cr.
