Bank Guarantee is not entered in the books of accounts. As per Part 3 to Schedule VI of the Companies Act, 1956, BG should be shown by way of discloser as Contingent Liabilities in Annual Report of the Company. Hence No entry is passed at all.
BG has no commission purview. if your banker agent contacted you saying ill get your job done for commission, report it as
dr. commission expense
cr. cash/bank
you can also amortize the commission.
YOGESH KAPOOR AND ASSOCIATES
New Delhi
B.Com
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