Accounts
This query is : Resolved
07 August 2013
Whatis the difference between CC account and OD account?
What is letter of credit?
Please answer me.
Thanks
S.Mahendrakumar
What is letter of credit?
Please answer me.
Thanks
S.Mahendrakumar
07 August 2013
Cash Credit and Overdraft, both fulfill the requirement of Working Capital of the borrowers. However, Cash Credit is for specific use of limit which is given on the basis of value of book debt and value of paid up stock. Limit of 75% is given calculated on (Value of book debt+Stock-Creditors). For this borrower is supposed to furnish the stock statements in given format of the bank on monthly basis based on which limit will be sanctioned.
Overdraft - An extension of current account in which the customer is allowed to withdraw more than the credit balance lying in the account. This may be a temporary accommodation to tide over temporary cash crunch or on a regular basis. If permitted on a regular basis, withdrawals are allowed up to a ceiling (called a limit), subject to availability of sufficient security with the bank.
Overdraft is generally for small working capital requirement but where larger funds are required C/C limit is preferred.
Overdraft - An extension of current account in which the customer is allowed to withdraw more than the credit balance lying in the account. This may be a temporary accommodation to tide over temporary cash crunch or on a regular basis. If permitted on a regular basis, withdrawals are allowed up to a ceiling (called a limit), subject to availability of sufficient security with the bank.
Overdraft is generally for small working capital requirement but where larger funds are required C/C limit is preferred.
07 August 2013
Regarding letter of credit check out below link--
https://www.caclubindia.com/experts/letter-of-credit-397255.asp
https://www.caclubindia.com/experts/letter-of-credit-397255.asp
10 August 2013
Thank you sir
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Post Office RD Interest
- Reporting Income under Section 44ADA
- Itr 1 processing
- Building and other construction workers welfare cess act 1996
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- Bank Accounts in Balance Sheet for ITR 3
- Annual return of gst limit
- TDS ON CASH WITHDRAWALS...
- Income of an individual
- Delisted shares sold in off market/ Rebate u/s87A
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
