The Accounting System for Enterprises stipulates that when foreign currency business occurs and it is necessary to convert foreign currency into bookkeeping currency, the market exchange rate on the day of business occurrence can be used, and the market exchange rate at the beginning of the month of business occurrence can be used for electricity consumption. However, by the end of the month, the month-end balance of each foreign currency account should be converted into the balance of the bookkeeping base currency according to the market exchange rate at the end of the month, and the month-end balance of the corresponding bookkeeping base currency account should be adjusted accordingly. The difference between the end-of-month balance of each foreign currency account and the end-of-month book balance of the corresponding bookkeeping base currency account after being converted at the end-of-month market exchange rate shall be treated as the exchange gains and losses of this month.

The accounting principles of exchange gains and losses are:

Exchange gains and losses arising from special foreign currency loans related to the purchase and construction of fixed assets shall be handled in accordance with the principle of capitalization of borrowing costs; Exchange gains and losses during the preparation period are included in long-term deferred expenses except for the purchase and construction of fixed assets; Unless otherwise specified, exchange gains and losses under other circumstances are generally included in the current financial expenses.

Accounting treatment of foreign currency funds

Now, according to the accounting method of foreign currency funds mentioned above, the accounting treatment of foreign currency funds is illustrated with examples.

Example: The balance of foreign currency account of Huaan Company at the end of last month is as follows (table omitted) Accounts payable.

Hua 'an Company adopts the market exchange rate at the beginning of the month when converting foreign currency into bookkeeping base currency. wrong

Let's assume that the market exchange rate of the US dollar at the beginning of this month is L: 8 3.

Huaan Company's foreign currency business this month is as follows:

Length received $90,000 in accounts receivable last month.

Debit: Bank deposit-$90,000? 747000

Credit: Accounts receivable-90,000 USD? 7470~ 10

2. Borrow US dollars from the bank and make a short-term loan of US$ 80,000.

Debit: Bank deposit-$80,000? 664000

Credit: Accounts receivable-80,000 USD? 664000

3. Buy $654.38+million from the bank, and * * * pay RMB 840,000 (the selling price of the bank on that day is 84 yuan per dollar).

The difference between the amount of RMB converted from the foreign currency of the RMB purchaser at the current market exchange rate (or the market exchange rate at the beginning of the month) and the amount of RMB actually paid shall be treated as exchange gains and losses;

Debit: bank deposit-USD account $ 100000? 830000

Financial expenses (840000-830000) 10000

Loan: bank deposit-840,000 yuan.

4. The equipment purchased by the buyer from abroad that does not need to be installed, with a price of 40,000 dollars, has arrived and delivered for use, and the payment has not been paid.

Borrow: fixed assets of 332,000 yuan.

Loan: accounts payable-$40,000? 332000

5. Repay the accounts payable of $200,000 last month.

Debit: Accounts payable-USD account? 200000 $ 1660000

Loan: Bank deposit-USD account? 200000 $ 1660000

6. At the end of the month, the company calculates the month-end balance in functional currency of each foreign currency account according to the market exchange rate of USD at the end of the month (1: 8.2), and accordingly adjusts the month-end balance of the corresponding functional currency account and makes corresponding accounting entries.