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Foreign currency

ANAnuja Nair9y ago
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 ?
MikeLittleMikeLittleTutor9y ago#1
Absolutely correct
ANAnuja Nair9y ago#2
Thanks sir.
MikeLittleMikeLittleTutor9y ago#3
You're welcome
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