Accounting Skills For Foreign Currency Business Of Commercial Enterprises

From the perspective of business operation and capital turnover, foreign currency business mainly includes: settlement of foreign currency claims, settlement of foreign currency debts, and exchange gains and losses arising therefrom.

After the reform of the foreign exchange management system, enterprises no longer need to set up foreign currency deposit accounts. Therefore, the accounting of foreign currencies is simpler than before.

(1) accounting requirements for foreign currency business

There are many ways to deal with the foreign currency business accounting of enterprises, such as: one by one discount algorithm, the month end discount algorithm, the original coin account method and the monthly balance adjustment method.

After the reform of accounting method for foreign currency business in July 1, 1992, China's enterprises mainly adopted the end of the month.

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The requirements for accounting are as follows:

1. when an enterprise has foreign currency business, it should convert the amount of foreign currency into the amount of the bookkeeping standard currency.

The exchange rate is based on the national foreign exchange quotation (in principle intermediate price) when the foreign currency business occurs, or the foreign exchange rate of the 1 day of the month.

At the end of 2. months, the balance of foreign currency accounts such as foreign currency claims, debts and other foreign currencies shall be converted into the balance of the bookkeeping standard currency at the end of the month.

According to the difference between the balance of the bookkeeping standard currency and the book entry standard currency amount at the end of the month, the exchange gains and losses will be used as the exchange gains and losses.

3. setting up foreign exchange profit and loss account.

Exchange gains and losses refer to losses and gains arising from the exchange of foreign currencies.

The exchange gains and losses account is a profit and loss account. The borrower mainly registers the foreign exchange losses arising from foreign exchange claims and debts, and the creditor mainly registers the exchange earnings. The difference between the borrowers is the net loss (or net income) of the exchange.

4. in accordance with the regulations, an account with foreign currency designated banks can be opened in foreign exchange designated banks, accounts receivable, accounts payable, short-term loans and long-term loans involving foreign currency businesses should be set up in foreign currency subsidiary ledgers so as to facilitate the detailed reflection.

[case] the initial balance of a foreign business account for foreign currency accounts in November 3, 1998 is as follows:

Accounts receivable - A company, the debit balance is 4000 US dollars, the exchange rate is 8.5 yuan, 34000 yuan.

Accounts payable - B company, the credit balance of 2000 dollars, the exchange rate of 8.5 yuan, 17000 yuan.

Two foreign currency pactions took place in the month:

On the 5 day, the goods were purchased from a B company of the state, and the amount was $5500. The amount was temporarily underpaid, and the exchange rate was 8.7 yuan at that day.

The value added tax of imported commodities is paid 8134.50 yuan in Renminbi bank deposits.

On the 12 day, a portion of the A company recovered from a country was repaid by US $1500, and the exchange rate at that day was 8.9 yuan.

The monthly balance adjustment method is required to calculate the foreign currency business of the enterprise, and the exchange rate at the end of 11 is 8.7 yuan.

1. the accounting treatment of the business enterprise is as follows:

(1) borrow: commodity purchase 47850

Tax payable - value added tax (input tax) 8134.50

Loans: accounts payable - B company (US$5 500 * 8.7) 47850

Bank deposits 8134.50

(2) borrow: bank deposit 13350

Loan: accounts receivable - A company (US$1 500 * 8.9) 13350

At the end of 2., the detailed information of two foreign currency accounts is as follows:

(1) "accounts receivable - A company"

The debit balance is US dollar.

4000-1 500=2 500 (US dollars)

The corresponding number of Renminbi is:

34000-13 350=20 650 (yuan)

According to the end of the month, the exchange rate should be adjusted to:

2 500X8.7=21 750 (yuan).

The exchange proceeds are:

21750-20 650=1 100 (yuan)

Monthly end adjustment:

Borrowing: accounts receivable -- A 1100

Loan: exchange gains and losses 1100

(2) "accounts payable - B company"

The credit balance of US dollars is:

2 000+5 500=7 500 (US $)

The corresponding number of Renminbi is:

17 000+47 850=64 850 (yuan)

According to the end of the month, the exchange rate should be adjusted to:

7500 x 8.7=65 250 (yuan)

The exchange losses are:

65250-64 850=400 (yuan)

Month end adjustment entry:

Exchange: profit and loss 400

Loans: accounts payable - B 400

In November 30th of 3.1998, the final balance of foreign currency accounts was as follows: "accounts receivable - A company" account debit balance of $2500, the exchange rate was 8.7 yuan, 21750 yuan.

The balance of accounts payable B company credit is US $7500, the exchange rate is 8.7 yuan, accounting for 65250 yuan.

The exchange rate or the 1 day exchange rate of the current month, and the previous practice is to choose the accounting exchange rate when the foreign currency account is increased. When the foreign currency account is reduced, the book exchange rate is calculated using the book exchange rate, and the book exchange rate is calculated according to various methods (such as first in, first out, last in, first out, and special recognition). The calculation of exchange gains and losses is very complicated and has little significance. Especially in some foreign currency accounts (such as long term loans), the amount of borrowing is large, and the amount of increase or decrease in the near future is small. In the case of constantly changing exchange rates, the balance of the final period is not adjusted, and the adjustment should be made at the time of repayment, which will not only affect the financial results of the current repayment period, but will also distort the financial situation of each year during the borrowing period. From the above accounting methods, we can see that after the implementation of the new accounting system and the reform of the foreign exchange management system, the accounting of foreign currency business is simpler than before.

Such treatment does not match the matching principle, and the new method is not only simple but also practical, and can also reflect the financial situation of an enterprise.

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