Celebrate Freedom with 10% OFF on CAclubindia Pro Membership. Subscribe Now!

BANK GAURANTEE JOURNAL ENTRY

400 views

Save Share

Join Us Follow Us Add as Source

sayad

Executive

207 Points Posted on 26 July 2024

COULD SOME ONE HELP WITH OURNAL ENTRY FOR BELOW BG

TENDER AMOUNT :- 10,00,000/-

BG AMOUNT @ 5 % 50,000

BG COMMISION ANNUAL 2.4 % :- 1200/-

ADD GST 12 %

FD 25 % OF BG AMOUNT :- 12500/-

PLEASE LET ME NOW THE SEQUENCE OF JOURNAL ENTRY AND ALSO THE ENTRY ONCE THE BG IS EXPIERED AND THE MARGING MONEY IS REFUNDEDE AND FD IS RELEASED

Replies (2)

Quick Summary

This discussion seeks guidance on the correct journal entries for a bank guarantee (BG) related to a tender. It covers the initial entry for the BG commission, including GST, and the deposit of margin money via Fixed Deposit (FD). The user also requests clarification on the entries required when the BG expires and the margin money/FD is refunded.