The unadjusted Forex gain or loss balance will arise due to the exchange rate fluctuations. As per the Accounting Standard 11: The effects of changes in Foreign Exchange Rates, the company has to account the Forex gain/loss which consists of both Realised and Unrealised forex gain/loss into their Final Reports.
To adjust Forex gain or loss
1. Create a ledger as Forex gain or loss under Indirect Expenses or Indirect Income to transfer the amount from Balance Sheet to Profit and Loss Account by using Voucher Class .
2. Create a Voucher Class .
3. Go to Accounts Info > Voucher Types > Alter > Select Journal .
4. Specify a Voucher Class name. For example, Forex Class .
5. Set the option Use Class for Forex Gain/Loss Adjustments? to Yes .
6. Select Forex gain or loss ledger.
7. Press Enter to accept, as shown below:
7. Go to Voucher entry > Use F7: Journal > Select the Voucher Class (Forex Class) .
Tally will display all the ledgers for which you need to adjust the Forex Gain or Loss.
8. Select the required ledger and accept the voucher.
The adjusted amount will not be displayed in the Balance sheet as it gets transferred to Profit and Loss Account.
Note : If the currency of the ledger and the base currency are the same, bill wise details will appear only for those masters while adjusting the Forex Gain or Loss.