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in this video we are going to learn accounting entries of foreign exchange rate gain or loss at the time of export we will go through step by step and we are looking forward your full focus to watch the complete video for better understanding lets head over to the definition foreign exchange fluctuation is a difference between rate of currency at the time of sale or export and at the rate of currency at the time of payment receipt the rate of currencies fluctuates daily it causes loss or gain while export or import types of foreign exchange accounting entries we will discuss here sale and receipt within same financial year and we will discuss also sale in one financial year and payment receipt in next financial year how to compute foreign exchange loss or again currency rate as on sale less currency rate as on payment receipt is equal to if the difference is negative then it is treated as loss if the difference is positive it is treated as gain we will create a sales and the payment