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Translation
Posted: Fri Jun 27, 2008 2:00 am
by segu_tulasi55
what is purpose of setiing of Tranlastion adjustment a/c would any one explain with example as far as i know it is used for tracking net differen due to fluctions of exhange rate. how i donot know?
Posted: Sat Jun 28, 2008 2:34 am
by byswamy
Hi,
For Revenues and Expenses (exchange rate)will be applicable for period avg rate,
For liabilities and assets (exchange rate)will be appicable for period end rate
Period avg rate 45/ per 1dollar
period end rate 47/ per 1 dollar
If entry will salary a/c(DR) and cash a/c(CR)
Different exchange rate will be applicable..difference amont goes into transalation adj a/c
I hope u clear with this
Thanks
Swamy