222

$show=home

Welcome to Accounting Education

The Accounting University with 3400+ Accounting contents as study material which can watch, read and learn anyone, anywhere.

Start your studies

Our library

Accounting | Auditing | Finance | Accounting software | Inspire

Take Your Course | Learn Accounting Skill

Choose Your Subject

$show=home

Journal Entries $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

Balance Sheet $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

How to Write Voucher Entries of Profit or Loss from Forex Fluctuation in Tally.ERP 9

0 0
Problem

I am Accountant in Singapore . I have some doubts in Tally. Can you please clarify my doubts?


1) Purchase stock from USA CO. USD$ 4089.00 while purchase time the exchange rate is 1.466.

Entry I post in Tally ERP 9.0:(F9)


Purchases A/C Dr → USD$ 4089 x 1.466 → S$ 5994.47

USA CO. Cr → S$5994.47

Payment made by TT to USA CO. same USD$ 4089.00 , But the exchange rate is 1.434.

Payment (F5)
USA CO. A/C Dr → USD$ 4089 x 1.466 → S$5994.47


Forex Rate Cr → S$ 130.84

Bank Cr → S$ 5863.63


Is it correct or Wrong, If it wrong means ,please tell me the correct posting in Tally.

More clear the problem , I have obtained from Yahoo Chat

In previous company they adjusted exchange rate automatically. once I did payments it will come automatically. but in new company they didn't set up Tally properly.

Solution




When we purchase or sale from other country. At that time, we face multicurrency problem. Different countries exchange rate is different. In India, Value of Dollar $ is Rs. 49. Value of Singapore dollar Rs. 34. In Singapore, Value of Dollar $ is 1.421 Singapore dollars. These currencies are fluctuating day to day. Suppose today value of dollar $ is Rs. 49, yesterday, it may be Rs. 48. So, It is very necessary to know, what is the amount of profit or loss due to change in foreign exchange rate when we will buy or sell the goods. This is the basic knowledge for every reader.

Now, I try to solve above problem.

If you can operate Tally.ERP 9 , then you can understand it that Tally.ERP 9 provides easiest way to track forex profit or loss . In your above example

Your first entry is correct
Purchases A/C Dr →USD$ 4089 x 1.466→ S$ 5994.47
USA CO. Cr→ S$5994.47

Your second journal entry is also correct. But way of feeding is not correct.


You will pass the second entry with exchange rate 1.434 with mentioning forex profit or loss in payment Voucher of Tally.ERP 9


USA Co. Dr. US $ 4089

Bank Account Cr. US $ 4089



Now tally calculate automatically profit or loss due to changing the value of foreign exchange and it can be seen in also in balance sheet . For transferring this profit to profit and loss’s income side . You have to pass the following journal entry in Journal voucher .


USA Company Dr. ( I have taken it jack ) S $ 130.84


Forex Profit and loss account Cr. S $ 130.84







Click image for full view
</ small>

First of all create forex profit and loss account under indirect income and then pass the above voucher entry in journal voucher .

After this you can see forex earning in profit and loss account .



related Video : Recording of multicurrency transactions in tally 9

Categories:

Comments

In comment, you can give your feedback, reviews, ideas for improving content or ask question relating to written content.

 


Name

access,2,account,86,accountant,95,Accounting,683,accounting definitions,99,accounting ebook,3,Accounting education,85,Accounting Education Ads Help,1,accounting procedure,2,accounting process outsourcing,2,Accounting Software,52,advance,3,advertising,6,africa,7,Amalgamation,6,amendments,16,Amortization,1,announcements,62,Annuity,2,assets,53,audit,47,auditing,41,Australia,2,B.Com.,22,balance sheet,87,bank,111,Bank reconciliation,12,banking,33,basic accounting,110,BBA,1,benefits,13,best,50,bill,12,black money,3,blog,12,bloggers,7,book keeping,4,bookkeeping,3,Branch Accounting - full tutorial,8,budget,35,Budget variance,13,business,65,businessman,9,CA,30,calculator,4,canada,3,capital,72,capital budgeting,27,career,21,cash,40,cash book,8,cash flow statement,11,Chiense,1,children,13,china,6,class,3,coaching,2,coins,2,college,6,commerce,10,commerce students,7,company,36,computer,9,computer accounting,1,conference,4,Contact vinod kumar,1,Control Your Spending,27,corporate accounting,69,cost,160,cost accounting,195,cost center,8,cost centre,1,CPA,2,credit,18,credit card,11,cs,10,currency,35,data,11,Debit and credit,17,debit cards,1,debt,62,debtor,21,degree,6,depletion,2,depreciation,38,Diwali Messages,12,documents,4,dollar,5,domain,3,Downloads,3,Dubai,1,e-accounting,17,earning,17,education,246,Education Loans,6,email,15,employee,4,EPF,2,ERP,7,euromoney,1,examination,7,excel,17,excise duty,6,expenses,65,facebook,7,factor of loan,1,fans,2,feature,32,fifo,5,FII,4,fiji,1,finacle,1,finance,823,Finance Journal Entries,6,Financial,134,financial accounting,147,Financial Statements,4,fire insurance,3,flickr,2,flow,4,forensic,4,forex,21,formula,8,france,1,fraud,6,free,2,fun,34,function,1,fund,48,GAAP,36,GDP,1,gdr,5,germany,1,gold,7,goodwill,4,goodwill accounting,3,google,34,google apps,3,google apps,1,google base,1,google buzz,1,google calendar,1,Google docs,38,google finance,3,google fusion tables,1,google talk,5,govt.,5,GST,33,guide,85,health,6,Hindi,2,Hindi Language,3,history,3,holding company,3,How to treat FBT in Tally 9,1,HRA,3,ICAI,11,ICAWI,3,ICICI Bank,1,IFRS,11,income,17,income statement,19,Income Tax,7,India,57,indian railway,1,Indonesia,1,inflation,4,inflation accounting,3,infographics,8,information,7,inspiration,176,insurance,14,insurance accounting,2,Intangible,3,interest,26,international,7,Internet,40,Introduction of Tally 9,1,inventory,41,investment,135,investment in Shares,6,invoice,3,IT,1,Japan,1,Job costing,4,journal entries,143,Journal Entries eBook Help,4,Kalculate,1,keyboard,3,kuwait,2,laptop,2,law,4,LBT,1,learning,36,lease,5,lecture,11,ledger,17,leducation,1,Leverage Analysis,7,liabilities,16,lifo,3,linkedin,1,loan,74,logical point,1,loss,5,loss of profit,1,M.Com.,5,m.phil,2,malaysia,3,management accounting,129,manual accounting,4,manufacturing account,1,market,11,marketing,3,mastercard,2,material,13,MBA,14,MCA,1,media,4,migration,2,mobile,9,money,61,ms word,3,ms. excel,14,multi currency in tally 9,1,Multicurrency Accounting,3,mutual fund,30,national security,1,new and sacrifice ratio,1,new york times,1,new zealand,1,news,1,NGO,5,nonprofit-accounting,6,North Georgia Mountains,1,Notification,1,NPV,17,NSE,1,odbc,2,office,10,oman,1,online application,2,online accounting,11,Online Accounting Course,5,otcei,1,pakistan,3,parents,3,Partnership,1,pay pal,3,pdf,4,Personal Finance,6,pie chart,1,pie chart of income,2,pnb,5,podcast,1,ppf,1,presentation,10,price,7,privacy policy,2,prof. vinod kumar,13,profit,24,profit and loss account,12,project management,11,provision,14,purchase,9,puzzles,2,quickbooks,2,Quote,22,quotes,42,quotes of svtuition,1,rating agency,2,ratio analysis,34,RBI,7,readers,13,real estate,13,rectification of errors,11,remote control,2,reports,10,reserves,8,responsibility accounting,4,retirement,2,revenue,3,Revenue reserves,2,review,7,risk,11,rupees,9,salary,5,sale,12,SAP,3,saudi arabia,1,saving,19,sbi,9,scholarship,2,school,1,SEBI,13,security,30,service tax,23,share,20,share trading,15,Shares,16,shri lanka,3,singapore,2,sms,6,social accounting,7,society,5,solution,219,South Africa,1,stock,24,stock exchange,22,structure,6,student,39,students,70,study,21,subsidiary company,2,svtuition,14,swiss bank,2,tally,100,tally 9,8,Tally 7.2,8,Tally 9,42,Tally.ERP 9,59,TallyPrime,1,tanzania,2,tax,94,Tax Accounting,30,TDS,15,teacher,62,teaching,112,technology,33,test,40,testimonial,15,testimonials,15,thailand,1,tips,60,trading,5,trading on equity,2,transaction,7,trend,12,trial balance,14,truthfulness,1,tuition,3,twitter,10,UAE,5,UGC - NET Commerce,13,UK,11,United Arab Emirates,1,university,9,usa,25,valuation,9,VAT,22,Video,36,Voucher and vouching,4,Wealth,8,wikipedia,25,working capital,29,youtube,14,
ltr
item
Accounting Education: How to Write Voucher Entries of Profit or Loss from Forex Fluctuation in Tally.ERP 9
How to Write Voucher Entries of Profit or Loss from Forex Fluctuation in Tally.ERP 9
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZoc7Ykz-OnQ56ZC34JUFmo34WM_-AEgbfWYaQ3NEYFzjlOAg_-l_RorKBi0iy1Xx6guamu1rGFv0C1Wk0MBaR94hgiBtVPfvYpO4DxxXFkkyGXLSMKofJBcqg7ArU2KvCCe5jtIgf1iOG/s400/currencies.PNG
https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEhZoc7Ykz-OnQ56ZC34JUFmo34WM_-AEgbfWYaQ3NEYFzjlOAg_-l_RorKBi0iy1Xx6guamu1rGFv0C1Wk0MBaR94hgiBtVPfvYpO4DxxXFkkyGXLSMKofJBcqg7ArU2KvCCe5jtIgf1iOG/s72-c/currencies.PNG
Accounting Education
https://www.svtuition.org/2009/09/how-to-write-voucher-entries-of-profit.html
https://www.svtuition.org/
https://www.svtuition.org/
https://www.svtuition.org/2009/09/how-to-write-voucher-entries-of-profit.html
true
2410664366776677676
UTF-8
Loaded All Posts Not found any posts VIEW ALL Reply Cancel reply Delete By Home PAGES Contents View All RELATED CONTENTS FOR YOUR LEARNING Topic ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS PREMIUM CONTENT IS LOCKED STEP 1: Share to a social network STEP 2: Click the link on your social network Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy