Full list of entries to be passed to complete one export or import transaction
Can any one pls tell me, the list of entries to be passed for imports starting from C&F Charges to freight paid for dispatch of goods and payment to vendor and also explain me the entries to be passed for exports of goods.
(If billed in Foreign currency, amount equal to Indian rupees as per shipping bill)
b. Bank a/c 55,000
to Party a/c 50,000
to Exchange fluctuation 5,000
(Exchange fluctuation entry shall be recorded for the difference in realization of foreign currency received and it is the diff of rate b/w realization date and recorded date)
c. Shipping charges paid:
Clearing & forwarding charges 10,000
Input GST 1,800
to C&F Agent 11,800
C&F Agent 11,800
to Bank 11,800
d. Export duty paid
Customs duty a/c 5,000
to Bank 5,000
2. For Import
a. Import Purchases Entry
Import Purchases A/c Dr
To Party A/c
b. Customs Duty Entry
Customs Duty A/c Dr
To *C&F Agent A/c
c. ITC Stat Adjustment entry
Input IGST A/c Dr
To Customs Duty A/c
d. Payment Entry along with Exchange Rate Fluctuation
Party A/c Dr
**Foreign Exchange Gain/Loss A/c Dr
(If Loss)
To Bank A/c
To **Foreign Exchange Gain/Loss A/c ( If gain is there).
Import and export is a process of buying and giving things from one country to another country to fulfil the requirements. At that point bestdissertation.com reviews explains you the process of trading and their business.
Entries likely to be passed for ur query
1. For export
a. Party a/c 50,000
to Export Sales 50,000
(If billed in Foreign currency, amount equal to Indian rupees as per shipping bill)
b. Bank a/c 55,000
to Party a/c 50,000
to Exchange fluctuation 5,000
(Exchange fluctuation entry shall be recorded for the difference in realization of foreign currency received and it is the diff of rate b/w realization date and recorded date)
c. Shipping charges paid:
Clearing & forwarding charges 10,000
Input GST 1,800
to C&F Agent 11,800
C&F Agent 11,800
to Bank 11,800
d. Export duty paid
Customs duty a/c 5,000
to Bank 5,000
2. For Import
a. Import Purchases Entry
Import Purchases A/c Dr
To Party A/c
b. Customs Duty Entry
Customs Duty A/c Dr
To *C&F Agent A/c
c. ITC Stat Adjustment entry
Input IGST A/c Dr
To Customs Duty A/c
d. Payment Entry along with Exchange Rate Fluctuation
Party A/c Dr
**Foreign Exchange Gain/Loss A/c Dr
(If Loss)
To Bank A/c
To **Foreign Exchange Gain/Loss A/c ( If gain is there).
* If customs duty reimbursed to C&F Agent
** Debit - if loss in foreign exchange
Credit- if gain in foreign exchange
Accounting for Clearing and Forwarding Charges.
a. Expenses Due Entry.
C&F Charges A/c
Input CGST/SGST A/c
To TDS U/S 194C A/c
To C&F Party A/c
b. Payment Entry
C&F Party A/c
To Bank A/c
Hope you got clarity
Import and export is a process of buying and giving things from one country to another country to fulfil the requirements. At that point bestdissertation.com reviews explains you the process of trading and their business.