Entries for recording letter of credit
This query is : Resolved
25 May 2013
Sirs,
I have been appointed as a purchase coordinator in a company which mainly imports its major goods on payment basis. And now we have been guided to open LC for our purchases.
Query is, i need to know the exact accounting entries that should be passed in my books to record the same and with regard to settlement to issuing bank too.
Thanks in Advance
Priya
I have been appointed as a purchase coordinator in a company which mainly imports its major goods on payment basis. And now we have been guided to open LC for our purchases.
Query is, i need to know the exact accounting entries that should be passed in my books to record the same and with regard to settlement to issuing bank too.
Thanks in Advance
Priya
Rupesh Jain
(Expert)
19 June 2013
for import lc pls contact your bank
due to every bank have diff-2 requirment.
when you open the LC bank charges charge for opening charges of LC.
that is bank charges. if you import machinery then you capitaliz this
when lc payment debit the party
credit the lc payable a/.c
when bank recover lc amount
then you debit the LC Payable a/c
to bank a/c
and also intt. charges by bank
if import is machinery then capitalize the intt.
other wise charg to P/l a/c
due to every bank have diff-2 requirment.
when you open the LC bank charges charge for opening charges of LC.
that is bank charges. if you import machinery then you capitaliz this
when lc payment debit the party
credit the lc payable a/.c
when bank recover lc amount
then you debit the LC Payable a/c
to bank a/c
and also intt. charges by bank
if import is machinery then capitalize the intt.
other wise charg to P/l a/c
Message likes :
1 times
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
- Tax on Amount transferred in HUF Account
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Nursery business
- GST input credit on commercial property
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- TDS on Dashcam rent and allied services
- Working on Gold wastage during Melting of old gold jewellery
- GSTR-9C filing
- Import Order Cancelled.
- Capital Gains Tax on Inherited Mutual Fund
- Form 144 TDS Return Validation Error – Mandatory Fields
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
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
