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
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
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Opting our of sec 44AD
- Multiple trade mark
- Transporter Declaration form
- LC charges in relation to Asset purchased should be Capitalised ?
- Copyright software
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- Regarding TDS Applicability For Director Remuneration
- Value of property in capital gain
- Regarding appeal to GSTAT
- Form 121 & TDS deduction
- Taxation on Swing Trading Income (No Other Income)
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
