banner_ad

Lc margin

AS 4376 views 1 replies

Dear Sir,

I have negotiated letter of Credit to the extent of Rs 30 Crores. The bank has taken 10% margin from my CC amounting to Rs 3 Crores. 

In balance sheet above will appear as below

Liabilities                                                Asset

Letter of Credit             30.00                   FD agst LC 3

or

Liablities

Letter of Credit net of

Margin                        27.00    

Which presentation is correct as per AS

Please let me know.

Thanks & Regards,

Murli

 

 

Replies (1)

Dear Sir,

I assume you mean you have discounted an LC of Rs. 30 Crores, where in Rs 3 Crores has been kept as margin. in this case you will reduce your debtors by Rs 30 Crores and increase your Bank balance by Rs 27 Crores and show Rs 3 Crores FD in current assets seperately.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details