Lc margin

4421 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
23 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 09 June 2026
Article Trainee

Numbertree LLP

Mumbai

CA Inter

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 28 May 2026
Accounts, Audit & Compliance Executive

Shyam Joshi & Associates

Pune

B.Com

View Details