How do I treat a Cheque Purchase in another Currency?
When purchasing goods in another currency say sterling, the idea is to make to entries in the Cheques Journal. The first entry is for the value of the amount in sterling. When the amount appears on the bank statement for a greater amount, you will need to add in another entry for the difference between the amount in sterling and the domestic currency. This can be analysis in Bank charges or Sundries, or if there was a large volume of transactions in sterling, it might be prudent to set up an analysis category called Sterling difference.
