Comments on : Buyer's Credit - A Source of Finance

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Comments on Buyer's Credit - A Source of Finance

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Arvindraj shahjee

Wrote on 09 June 2012

What about the TDS on interest on buyers credit ?

when repaying bank >> Dr. Buyers Credit Bank A/c... Cr. Current Bank A/c Ledger. And YES Buyer's Credit Bank balance as a Banker not as a creditor. Foreign Fluctuation will be calculated at forex rate as on Balance sheet date.

Kapil

Wrote on 04 May 2012

1st you should create a ledger in the name of bank.... apart to ledger opened for current account, if bank is same. at the time of making payment to Supplier from Buyer's Credit >> Dr. the Supplier and Cr. Buyer's Credit Bank A/c.

Mayur J.Desai

Wrote on 28 April 2011

LC (180 days)issued by us for import of goods, due date 13.06.11.We requested bank to give Buyer's credit. They are refusing,informing us that in 180 days the goods are sold and amount is also realised. Is there any RBI circular on this.

bankim

Wrote on 27 April 2011

As on the balance sheet date will the company show XYZ or Bank as a creditor. If bank then should it be crediotr or loan. Also what will be the effect on foreign fluctuation a/c

bankim

Wrote on 27 April 2011

Sir i would like to know the accounting treatment in the books of the buyer company i.e ABC Ltd in case of your example.

Dileep Kulkarni

Wrote on 26 April 2011

Good presentation. Please let me know whether Buyers Credit Facility is avilable to Partnership Firms Dileep Kulkarni

Mayank Jain

Wrote on 25 April 2011

4. Trade creditors under FLC are allowed to be roll over for maximum of 1 year and Capex creditors under FLC can be roll over for 3 years. 5. It also leads to utilisation or blockage of FLC limits which may constrain ur arrangements of imports of Raw material

Mayank Jain

Wrote on 25 April 2011

3. However it does not have any effect on the Drwaing power of the company and PBF calculations, since the byuers creditors remains as current liability under the head acceptance and LC.