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Foreign currency journal entries. How to record a foreign currency transaction in bookkeeping?

If you buy goods or services in currency that is different from your functional currency, you need to input data using exchange rates. For example invoice USD $1000. Exchange rate is 1.09148. Accounting Entry - debit purchases and credit accounts payable AU $1091.48 ( 1000*1.09148)

If we are paying such a payable through our funds in foreign currency bank a/c (eg. TT or Bank draft), what exchange rate i should use to record the transaction in my reporting?
As your eg. invoice USD $1000.
Spot exchange rates Buying- 1.09148 Selling- 1.12148

Can i use bank selling rate to convert as if i were to buy the dollars from the bank?

In order to convert the amount you can use exchange rate at the time of a transaction or average rate for that date. For average rates - you need to use historical rates data - daily foreign exchange rates.

As a bookkeeper, I have recorded a lot of currency transaction. Remember that all transactions in currencies other than the functional currency are treated as transactions in foreign currencies. It is possible that the carrying value for an item will have been determined by a comparison of two amounts that have been measured at different dates.

I would suggest you enter the transaction when you make it and then reconcile it with the statements when they arrive, not enter transactions from the statements. The transaction would be FROM Bank A TO Bank B todays date? and then reconcile each side of the transaction when each statement arrives