10-28-2009, 08:27 PM
Thanks, can you help with the example of prepaid rent
If $12 in advance paid on Jan 1 for a year rent when $/Rs rate was 80, however exchange rate changed to 90 on Jan 31
(functional currency rupees)
(Jan 1) Advance 960
Bank 960
(Jan31) Rent expense 80 (960/12)
Advance 80
Please confirm whether this entry is correct or shall we have to record exchange gain/loss every time we reverse the advance ?
If $12 in advance paid on Jan 1 for a year rent when $/Rs rate was 80, however exchange rate changed to 90 on Jan 31
(functional currency rupees)
(Jan 1) Advance 960
Bank 960
(Jan31) Rent expense 80 (960/12)
Advance 80
Please confirm whether this entry is correct or shall we have to record exchange gain/loss every time we reverse the advance ?