Accounting entries for invoice paid in two different currencies

[Usama]

Hi,
I recently joined a small company and I have found that they made some payments (Invoices / Salaries) in two parts; in original currency and the 2nd part in different one. (Most probably due to lack of cash for the invoice original currency)
E.x; A salary of 800 USD was paid, as (650) USD and the rest as (855) TRY. (Payment in Cash)
My question is: what are the accounting entries for above example, how to best record it ?
Your support is always appreciated.
Thanks!

 

[kirby]

What currency is used for the accounting books?

 

[Usama]

What currency is used for the accounting books?

Hi
Home currency is USD

 

[kirby]

Given that your books are kept in USD then everything has to be recorded in terms of USD. So if you had a TRY transaction you have to convert it to USD amount to record it in your USD books. If you have an automated GL system that can handle multiple currencies then this makes everything easier. I suspect you have a TRY based bank account on your books that is shown using the TRY amount. If so that acct needs to be shown at its USD amount on your USD books.

 

[Usama]

Given that your books are kept in USD then everything has to be recorded in terms of USD. So if you had a TRY transaction you have to convert it to USD amount to record it in your USD books. If you have an automated GL system that can handle multiple currencies then this makes everything easier. I suspect you have a TRY based bank account on your books that is shown using the TRY amount. If so that acct needs to be shown at its USD amount on your USD books.

I got it now, Thank you very much

 

[alfonso_aigbekaen]

Hi,
I recently joined a small company and I have found that they made some payments (Invoices / Salaries) in two parts; in original currency and the 2nd part in different one. (Most probably due to lack of cash for the invoice original currency)
E.x; A salary of 800 USD was paid, as (650) USD and the rest as (855) TRY. (Payment in Cash)
My question is: what are the accounting entries for above example, how to best record it ?
Your support is always appreciated.
Thanks!

 

[alfonso_aigbekaen]

 

[alfonso_aigbekaen]

Please let me know if you have different ideas on how you will post these entries.

Thanks.

 

[alfonso_aigbekaen]

Where does the 855USD come from. If I got you right the 1st part in USD 650 and the 2nd Part in overseas currency converted to USD is150 to make up the balance of 800 USD that completes the salary payment.