Plz tell me how to do the journal entry of letter of credit. what entry should be passed when amount received from bank against letter of credit. its urgent.
Menu
journal entry of LC
Replies (5)
If you sold goods to party
Entry is
Party A/c DR.
TO sales
after that you have recd money from bank against letter of credit
then entry is
bank a/c dr.
to party
there is no matter co. recd money from party directly/indirectly through letter of credit, Entry will be same
If any Comment ,plz reply
did bank charges any amount for giving amt. against letter of credit. I am little confused about the concept of letter of credit. plz explain it .
Enter the following
Letter of credit(LC) Commission expense in Debit $XXX (amt)
Purchases / Stock / Inventory in Debit -$XXX
Vendor in Credit - $XXX
Bank in Credit -$XXX
LC margin with the Bank - ( Advances) - Credit -$ XXX
| Originally posted by : Numia | ||
 |
Enter the following Letter of credit(LC) Commission expense in Debit $XXX (amt) Purchases / Stock / Inventory in Debit -$XXX Vendor in Credit - $XXX Bank in Credit -$XXX LC margin with the Bank - ( Advances) - Credit -$ XXX |
 |
Yes bhuvan, divya is absolutely right. Doesnt matter whether is payment is recd against LC or directly.
Entry will remain same.
@ Numia n krishnamoorthi, LC margin money will cum in the pic only when the company issues an LC for import.
Recent Topics :
- Hi experts needed some help
- Gift of Immovable Property u/s 92 of Income Tax Ac
- NSE BSE Pre-open session changes from 7 September
- Financial statements for non corporate entities
- Hi experts need some help
- Is SAP FICO a good career option for finance and a
- Direct Cost booking
- TDS on Property Purchase Paid
- Cash Purchase Above ₹10,000, ITR/40A(3) Trea
- TDS on dividend to non resident shareholders
Related Topics :
CAclubindia
