Treatment of Bank Guarantee
This query is : Resolved
02 August 2024
Our organisation has accepted a Bank Guarantee from one of it's vendors in lieu of Security Deposit payable by the vendor to our organisation for work order related to services rendered to our organisation. Kindly let me know the accounting treatment and consequent disclosure in the financial statements. We are not a Company, it is an organisation exempt u/s. 10(23C)(iv) of the Income Tax Act, 1961.
Regards.
Regards.
03 August 2024
No accounting treatment can be given for the bank guarantee accepted.
It can be disclosed in the financial statements under notes on accounts.
It can be disclosed in the financial statements under notes on accounts.
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03 August 2024
To disclose as "Contingent Asset" or Liability" Sir ?
03 August 2024
It's contingent asset.
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03 August 2024
Thank you very much Sir. My sincere regards.
03 August 2024
You are welcome...
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