My company has opened a foreign LC payable at sight after 6 months bank has demande margin money and same has been provide by us to bank now what accounting entries should be passed by us.
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Accounting Entry For Opening foreign LC
Replies (3)
MARGIN MONEY ON LC -DEBIT TO BANK
MARGIN MONEY CREATE UNDER HAED -LOAN & ADVANCES (ASSET)
MARGIN MONEY IS JUST LIKE SHORT TERM FIXED DEPOSIT ,WHEN YOU MAKE THE PAYMENT TO TO YOUR IMPOTER THROUGH BANK BANK WILL RELEASED MARGIN MONEY WITH INTEREST AFTER DEDUCTATION OF TDS
I have a doubt that LC opened at sight, is needed to make payment to the bank immediately and not after specific period i.e. 6 months.
no
payment is seeked by bank on presentation of bills at bank counter, bank release the payment by debiting your account.
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