Letter of credit
This query is : Resolved
Abdul Khadar
(Querist)
21 December 2013
Can somebody tell the procedure in letter of credit along with the accounting entries.. Thanks in advance..
Nikhil Kaushik
(Expert)
22 December 2013
For how Letter of credit works, refer:
https://banking.about.com/od/businessbanking/a/letterofcredit.htm
with regard to entries, no entry is passed in the books of the company/entity when bank issues LC. Only the entry for fees/commission/interest is passed on periodic basis. entries for liability against bank are made in books if the LC devolves.
https://banking.about.com/od/businessbanking/a/letterofcredit.htm
with regard to entries, no entry is passed in the books of the company/entity when bank issues LC. Only the entry for fees/commission/interest is passed on periodic basis. entries for liability against bank are made in books if the LC devolves.
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