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    linasdg's Avatar
    linasdg Posts: 3, Reputation: 1
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    #1

    Oct 2, 2007, 11:41 PM
    Journal entry for difference in currency conversion
    I raised an invoice for an amount of 20,400 dhs. Equivalent to 4,000 EURO but I received 21,000 dhs. As payment which is over of 600 dhs. I booked it as Debit - Bank - 21,000 & Credit - A/R - 20,400; then, how about the 600 difference? Please advise ASAP!
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Oct 3, 2007, 05:19 PM
    Do they want the 600 back?

    If they do, credit a liability account for the remaining 600.

    If they don't want the 600 back, credit revenue for 600

    The question is why did they pay you the extra 600? I would set it up as a liability for now and look into why they sent you the extra 600.
    grace.device's Avatar
    grace.device Posts: 5, Reputation: 1
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    #3

    Sep 7, 2010, 07:09 PM
    Comment on CaptainForest's post
    Maybe because, it is a wire transaction, so the payee should account it as a gain.. not sure if realized/unrealized.. but in your part, it is your gain.
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