How to Record Multi-Currency Transactions in Tally Prime?
Tally makes it easy to manage Multi-Currency, automatic calculations of exchange rates, automatic conversion of any currency used to record a transaction to the currency of the account, etc.
Many Organizations have transactions in more than one currency. Such transactions have to be recorded either in the base (home) currency or in the foreign currency. If the transactions are recorded in home currency, the rate at which the foreign currency is exchanged should be recorded as well. At times you need to record the transaction in the foreign currency itself when you maintain the balance of the concerned account in foreign currency.
Tally. ERP 9 uses the term base currency for the currency in which your account books are kept. Foreign Exchange is used interchangeably with foreign currency. The base currency is specified while creating the company.
The Balance Sheet and Profit & Loss Account of the company is maintained in the base currency. Conversion of foreign currency account balances is done as per rules set by you.
Multicurrency is used in foreign exchange transaction.
Table of Content for recording multi-currency in tally prime
- Currency Creation
- Ledger Creation
- Voucher Class Creation
- Purchase/Sales Voucher
- Payment/Receipt Voucher
- Journal Voucher for adjustment
1) How to Activate and Create Currency in tally prime?
Gateway of Tally —-> Create —–>Show more —-> Show inactive —-> Currency —-> Create New
2) Create following ledger: –
- Forex Profit (Indirect Income)
- Forex Loss (Indirect Loss)
3) Creating Journal Voucher Class: –
Gateway of tally ——>Alter——> Voucher Types——>Journal Voucher
- Name of Class: – Forex Profit
- Use class for forex gain/loss adjustment: – Yes
- Ledger name: – Forex profit
Same Way Create forex loss Class for Journal Voucher
Multi-Currency Assignments: – (Purchase)
| Ques 01) | |
| 1-5-2023 | Company purchase 10 Samsung galaxy m30s each at 12500/ rupees from Wadiya and co groups. where rate of exchange was rupees 56/$ |
| 1-6-2023 | Company Paid to Wadiya group by HDFC bank while paying rate of exchange was rupees 57/$ |
| Show the Report of ledger for profit loss and pass the Journal entry to adjust the remaining amount. | |
| Ques 02) | |
| 1-7-2023 | Company purchase 15 MI Note 5 Pro each at 10500/ rupees from Anupam Co. & groups. where rate of exchange was rupees 61/$ |
| 1-8-2023 | Company Paid to Anupam Co & groups by ICICI bank while paying rate of exchange was rupees 60/$ |
| Show the Report of ledger for profit loss and pass the Journal entry to adjust the remaining amount. | |
| Ques 03) | |
| 1-8-2023 | Company purchase 20 Laptops each at 60000/ rupees from Tata & Co. where rate of exchange was rupees 60/$ |
| 1-9-2023 | Company Paid to Tata & Co. by HDFC bank while paying rate of exchange was rupees 62/$ |
| Show the Report of ledger for profit loss and pass the Journal entry to adjust the remaining amount. | |
| Ques 04) | |
| 1-9-2023 | Company purchase 12 Led T.V. each at 35000/ rupees from Birla & Co. where rate of exchange was rupees 68/$ |
| 1-10-2023 | Company Paid to Birla & Co. by State bank while paying rate of exchange was rupees 67/$ |
| Show the Report of ledger for profit loss and pass the Journal entry to adjust the remaining amount. | |
Multi-Currency Assignments: – (Sales)
| Ques 01) | |
| 1-5-2023 | Company Sales 5 Samsung galaxy m30s each at 13500/ rupees to Swaroop & Co. where rate of exchange was rupees 56/$ |
| 1-6-2023 | Company received from Swaroop & Co.by HDFC bank while paying rate of exchange was rupees 57/$ |
| Show the Report of ledger for profit loss and pass the Journal entry to adjust the remaining amount. | |
| Ques 02) | |
| 1-7-2023 | Company Sales 10 MI Note 5 Pro each at 11500/ rupees to Bajaj & Co. where rate of exchange was rupees 61/$ |
| 1-8-2023 | Company received from Bajaj & Co. & groups by ICICI bank while paying rate of exchange was rupees 60/$ |
| Show the Report of ledger for profit loss and pass the Journal entry to adjust the remaining amount. | |
| Ques 03) | |
| 1-8-2023 | Company Sales 15 Laptops each at 62000/ rupees to Ruby & Co. where rate of exchange was rupees 60/$ |
| 1-9-2023 | Company received from Ruby & Co. by HDFC bank while paying rate of exchange was rupees 62/$ |
| Show the Report of ledger for profit loss and pass the Journal entry to adjust the remaining amount. | |
| Ques 04) | |
| 1-9-2023 | Company Sales 08 Led T.V. each at 40000/ rupees to Mayur & Co. where rate of exchange was rupees 68/$ |
| 1-10-2023 | Company received from Mayur & Co. by State bank while paying rate of exchange was rupees 67/$ |
| Show the Report of ledger for profit loss and pass the Journal entry to adjust the remaining amount. | |