Regarding lc
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 June 2016
Please provide me the information regarding entry to be passed in books of accounts in respect of Sales made against LC (90 Days). and contigent liablity in this respect if any arises. in B/S.
Rupesh Jain
(Expert)
30 June 2016
its two option if you are making the entry of LC when you open or you make entry when you make payment against LC. if you make entry on LC payment then you take contingent liability as on B/s date.
debtors a/c
to Sales
LC receivable
to Debtors.
on recd payment.
bank a/c
to LC receivable a/c
on opening of LC
you make entry of
debtors a/c
to Sales
LC receivable
to Debtors.
on recd payment.
bank a/c
to LC receivable a/c
on opening of LC
you make entry of
CMA Ramesh Krishnan
(Expert)
30 June 2016
Sales made under LC and if you have discounted the same and got the money, then Contingent liability arises to the extend of discounted bill value till the LC bills paid by customer.
While Sales made
Dr: Debtors
Cr: Sales
While bill of exchange
Dr: Bill Receivable
Cr:Debtors
While discounting bill of exchange
Dr: Bank
Cr: Bill receivable
While Sales made
Dr: Debtors
Cr: Sales
While bill of exchange
Dr: Bill Receivable
Cr:Debtors
While discounting bill of exchange
Dr: Bank
Cr: Bill receivable
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