Dear Sirs, I was wondering if Buyers credit needs to be shown in Balance sheet as other payables and not as borrowings.
Can it not be treated like BG/LC?
Eg:S Creditors - USD 100Mn
Cash paid - USD 80Mn ; Buyers credit - USD 20Mn
In my B/s, s creditors will be zero as its fully paid and the balance 20% will get moved from s creditors to other payables.
Moreover, the BC ( being a lien on the NFB line) will be a part of that other payables and not borrowings.
Need expert comments please...
Regards- Murthy
CAclubindia
