Accounting treatment on short collection of export payments?

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  1. Vishal1993

    Vishal1993 New Member

    I need help with accounting treatment in following transaction.
    Company ABC has made export transaction to party XYZ US$ 107319.13 @ 66.40. Payment received US$ 107267.33 (please note that party XYZ has remitted full amount of invoice but US$ 51.80 was deducted by intermediary bank as bank charges). Banker of copmany ABC has intimated to company that you have received payment of US$ 107267.33 from your party and credits Rs.7098556.00 to bank account after deducting swift and currency conversion charges of Rs.2541. Company ABC has taken rate 66.20 from bank trasury to convert US$ 107267.33 in Rupee.
    What should be the accounting treatment of transaction on receipt of payment?
     
  2. 1. Entry on Sale
    Debtor A/c Dr. 71,25,990 (107,319.13*66.40)
    To Export Sale 71,25,990

    2. Entry on receipt of payment
    Bank A/c Dr. 70,98,556
    Bank Charges Dr. 5980 (In P&L) (Rs. 2,541+ $51.8*66.40)
    Foreign exchange loss Dr. 21,454(Fluctuation diff.approx) (In P&L)($0.20* 107319.13)
    To Debtor 71,25,990

    For any query
    Ph:9717538224
     
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