Hi sir, regarding the foreign currency topic, if lets say an entity takes up a bank loan for 12 million dinars ; and on this date the exchange rate is 6 dinars:$1
How do we record the journal entry of this initial transaction?
12 million dinars / 6 dinars = $2 million
DR Cash $2m
CR Loan payable $2m
Am I correct ?
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Foreign currency
Absolutely correct
Thanks sir.
You're welcome
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