A work order of Rs. 1,75,20,000/- has been issued by the company to the vendor on 1 February, 2019. Against this, Bank Guarantee of Rs. 17,52,000/- has been received from the vendor on 4 February, 2019. Liability of Rs. 34,45,600/- has been booked as S/Creditors For Accrued Expenses for the accounts closing for 31 March, 2019.
How should the accounting and disclosure of "Bank Guarantee" of Rs. 17,52,000/- (as above) be made in the financial statements including notes to accounts for the year ended 31 March, 23019 ? Also, please indicate the amount of Bank Guarantee to be disclosed in the financial statements including notes to accounts.
Regards.
CAclubindia
