Journal entries related to LC (from stand point of importer)

1. On opening/requesting LC----------------No entry needed

2. On receiving goods

Purchase  Dr.

to Party

3. On payment by bank and on receiving advice

Party

to Bill Discounted/ or any other good name say Bills payable acount or credit bank name here

4. O payment to bank say after 90 days

Bank ( Bills

Lc charges( Iff to be borne by us)

to our bank account