For FCV plz validate my entries and also plz tell me where in the scene Balance Sheet Adjustment a/c comes .
Exp Dr 100
To vendor 100
on 31.03.08 due to rise in EX rate
loss on exchange rate Dr 5
To Vendor 5
on 15.04.08 further rise in EX rate
Vendor Dr 105
Loss on exchange Dr 5
To bank 110
Also plz tell me what is the use of reversal of the entry.