letter of credit
Querist : Anonymous
LC once received you need to chekc the
1. LC validity period
2. LC Due date
3. LC Value
4. LC terms & conditions as per P.O
5. Drawee bank
6. Negotition bank
7. Interest on whose account
Type of LCs
Revocable
Irrevocable
Unconfirmed
Confirmed
Standby Letters of Credit
Revolving Letter of Credit
Transferable Letter of Credit
Back-to-Back Letter of Credit
While receive the LC note
Dr: LC receivable
Cr: Sundry Debtors a/c
Some up to making the Bill of exchage you can track the details out side the account, once BOE made and accpeted by the Party, you can make
Dr:BOE receivable a/c
Cr: Sundry Creditors a/c
Querist : Anonymous
thanks a ton sir, can you help by elobrating some more basic pointfor Back to Back LC, Stand by LC & transferable LC.
These are mainly used for exporters
Back-to-Back Letter of Credit
A back-to-back letter of credit can be used as an alternative to the transferable letter of credit. Rather than transferring the original letter of credit to the supplier, once the letter of credit is received by the exporter from the opening bank, that letter of credit is used as security to establish a second letter of credit drawn on the exporter in favour of his importer. Many banks are reluctant to issue back-to-back letters of credit due to the level of risk to which they are exposed, whereas a transferable credit will not expose them to higher risk than under the original credit.
Standby Letters of Credit
A standby letter of credit is used as support where an alternative, less secure, method of payment has been agreed. It is an alternative fot BG Should the exporter fail to receive payment from the importer he may claim under the standby letter of credit. Certain documents are likely to be required to obtain payment including: the standby letter of credit itself; a sight draft for the amount due; a copy of the unpaid invoice; proof of dispatch and a signed declaration from the beneficiary stating that payment has not been received by the due date and therefore reimbursement is claimed by letter of credit.
Transferable Letter of Credit
A transferable letter of credit is one in which the exporter has the right to request the paying, or negotiating bank to make either part, or all, of the credit value available to one or more third parties. This type of credit is useful for those acting as middlemen especially where there is a need to finance purchases from third party suppliers.
Querist : Anonymous
Querist : Anonymous
can you please guide me about CMA courses, where to approach,what r the procedure , eligiblity, duration & fees structure.
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https://www.icwai.org/icwai/academic-admission.asp
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