Please Help: Foreign Currency Revaluation
Posted Date : 26-Aug-2013 , 10:45:47 am | Posted By Vaneet Gupta
Company A Limited has given capital advance amounting USD 100 (USD 1 INR 55) to XYZ limited USA on 25th Mar13. XYZ Limited USA deliver the assets on 22nd August13 (USD 1 INR 65). Please advice how the foreign currency revaluation happen and capitalisation of assets advances to be recorded in the books of Company A limited,starting 25th Mar13, considring that the financial year for A limited is Apr-Mar.
Category : Accounts | Answers : 0 | Comments : 3 | Hits : 173
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SUBHASH KUMAR JHA
26-Aug-2013 , 01:02:15 pm1st check the the dollar rate on 31.03.2013 and then adjust this by passing the entry XYZ Ltd. Dr. To PL OR, PL Dr. To XYZ Ltd. Thereafter adjust this figure with the rate on 22.08.13 in the same way.
Vaneet Gupta
27-Aug-2013 , 10:15:53 amDear Subhash, Thanks for the revert. As per certain guidance / clarification by ICAI, Capital advances cannot be revaluated. My purpose for this query is to confirm the rate at which Fixed assets to be capitalised in the books.
Vaneet Gupta
27-Aug-2013 , 10:16:00 amDear Subhash, Thanks for the revert. As per certain guidance / clarification by ICAI, Capital advances cannot be revaluated. My purpose for this query is to confirm the rate at which Fixed assets to be capitalised in the books.