Bank interest earned in multi currency / closing a multi currency bank account

LeighH1977

Hi team, hoping someone out there may have a solution for my 1 queries today. Running accountright premier V19.15 with muti currency. We are holding US$ currency in an account and this is reflected correctly in our account list however 2 things recently happened and i am a bit stumped on how to deal with it.....

 

1) We rcvd interest income in the FX account of US$13.41. Can anyone let me know the best way to transact this so the US$ account reflects the income and our account list reflects the new balance.

 

2) We recenly converted all the US$ to AU$ and closed the account and transferred the funds into our normal bank account. Anyone have a suggestion on best way to account for this to reflect the new US$0 balance and deposited funds into the AU$ account?

 

Thanks in advance

Mike_James

Hi @LeighH1977, I suggest the following:

Record a Receive Money transaction for the interest income. When recording, select the USD currency first to allow you to then select the USD bank account. Use the day's exchange rate. Allocate to interest income.

To transfer the USD balance to AUD, you can use a Spend Money transaction on the USD account. The exchange rate will be set by what you received in AUD. Allocate the amount to the AUD bank account. Check before you record how much the AUD amount will be, as there may be the odd cent difference, which you will need to record by a separate receipt or payment transaction, allocated to (say) bank fees.

Finally, once the transfer has been recorded, check that the USD balance has gone to nil. The USD exchange account however is unlikely to be nil, the balance should be transferred by AUD general journal to the currency variance account.

Hope that helps you.