How do businesses account for dinar dirham transactions ?
by Syed Hafiz
FIRSTLY is the question of putting the coins through the till . Please ensure all the staffs are aware of the coins plus how to identify World Islamic Mint ( WIM ) coins from non-WIM coins . The best way is to have a dedicated button on the till which can be edited because the price of the coins may change . For example many tills have a “ voucher ” button which can be selected by the teller and then the value of the voucher is inputted , for example one dirham is 25 ringits . This ensures the sale is recorded , and the price of the coins on that day , but also the accountant is aware of the number of coins that have passed through the till . To record the coins in the Profit and Loss Accounts I would advise to convert the price of the coin into the local currency . For example one dirham is recorded in the accounts as SGD 11 . However on the Balance Sheet the coins should be recorded separately to the local currency . So for example the Balance Sheet might appear as :
> Cash at hand ( Local currency ) 2500 > Cash in the bank 8346 > Dirhams 20 ( 220 ) > Dinars 3 ( 265 x 3 = 795 )
14 www . tumasiktradenetwork . org
To record in P & L statement , simply record it to local currency .
You can obtain the current dinar and dirham exchange rate at our website wwww . tumasiktradenetwork . org
The dinars and dirhams can also be recorded with their price converted into local currency in brackets too .
The above are of course just suggestions , each business will find the method that works for them .
Abdallah Seymour