Bank Gaurantee Discounting - Accounting Treatment
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 July 2011
Example: "If a company has received a bank gaurantee from a customer and the company discounts the bank gaurantee what should be the accounting treatment. Should the money received from bank gaurantee discounting be recorded as received from debtors or the same should be recorded as a liability or loan."
In my opinion it should be shown as a liability but i am not confirm about the same.
In my opinion it should be shown as a liability but i am not confirm about the same.
15 July 2011
yes. if you are discounting the Bank guarantee of the customer with bank then this need to be shown as separate liability against receivables
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