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Dec 07, 2009 at 08:32 AM

forex cancellation



My query is , what is the accounting entry supposedly passed for forex cancellation? For cancellation -- I am doing 'cash settlement'.

Currently, for accounting symbol(currency swap) I have assigned an expense account.

So right now the entry being passed is

Cancellation Expense Dr./Cr.

Bank Cr./Dr.

Forex Position Dr./Cr.

Bank Cr./Dr.

The amount is the differential inflow/outflow amount in payment currency (based on the spot rate for cancellation).

Now the requirement is , on cancellation-- differential amount and some nominal bank charges entries are passed in the book of accounts.

Is the above listed entries correct? If not, what are the standard entries? How do I take care of the additional charges being posted?


Edited by: Sur Mits on Dec 7, 2009 9:33 AM