Accounts

pavani.pothugunta (Querist) 22 June 2013 This query is : Resolved
A purchased goods from B on 31.12.12 in USD 500.But A agrees to pay the amount after 4 months.The rate of exchange on 31.12.12 is 1$=50.00.the rate after 4 mths is 1$=52.00.AT which rate he has to book the liability and the amount to be shown as profit or loss for the year ended 31.03.13.

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prabhakar singh (Expert) 22 June 2013
To me payment date should be considered.

Guest (Expert) 22 June 2013
Are you a student for CA or for law? Your question does not give any indication on whether you want solution on accounting point of view or on law point of view.

Rajendra K Goyal (Expert) 22 June 2013
Whether the payment agreement was for payment in USD or INR. The payment depends upon the agreed terms irrespective of the exchange rate.