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Credit buy from x,co.eur.5,0(ex.rate aed.5.5/eur)settle after but ex.rate aed 5.65/euro?what is the journal?

Materials imported(Purchase) from X,Company on60 days credit ,Value of Euro.5,0/- Exchange rate is Aed.5.5 per1 Euro.Then settlement made after60 days for the Same Amount but exchange rate was AED5.65/1 Euro..what should be the journal at the time of purchase and settlement?

Accounts Payable Cash Flow
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Question added by ABDUL MAJEED KUNNAM PADATH , Chief Accountant , Arab building materials
Date Posted: 2013/10/12
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Shaji Menhal
by Shaji Menhal , Deputy Manager Project Accounting & Commercial , Sterling and Wilson Solar Limited

1. At the Time of Purchase

 

Dr. Purchase  275 AED

 

Cr.  X.Co LTD    275 AED

(Being Purchased from X Co. Worth50 Euro and the Currency Exchange rate is AED5.5/1 Euro)

 

2. At The Time of Payment(Currency Exchange Rate is Changed)

 

Dr. X Co. Ltd                                               275 AED

Dr. Gain/ Loss on Currnecy Exchange         7.50 AED

 

Cr. Bank                                                     282.50 AED

( Being Payment made to M/s X Co. LTD of50 Euro , the Currency Exchange is AED5.65/1 Euro)

Deleted user

1.Purchase entry

dr. Purchase a/c27.5 aed

 cr. sundry creditors (i.e. x co.)   27.5 aed.

 

2. dr. sundry creditors a/c.(i.e. X co.)  =27.5 aed

    dr. p/l on currency exchange rate    =  0.75 aed

    Cr. Bank A/c.      = 28.25

 

 Narration :- (Being loss incurred due to raise in currency exchange rate debited to creditors a/c.)

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