Hi Susan,

Using separate control accounts for each currency is an easy method of tracking small numbers of foreign currency transactions. It relies on the fact that when a vendor send you and invoice in US $$, and you send them a cheque in US $$, drawn on a US $$ bank account, then no foreign currency transactions have occurred.

As long as you remember to make a journal entry at the end of the month agains the USD control account to reflect it's value in $CAD (the entry is to unrealized gain/loss on exchange and a companion foreign currency adjustment account for the control account).

This is simpler to manage unless you have a large number of purchases from the US.