please tell me in written the first day entry of letter of credit how it,s accounts maintain and tell me if purchaser give 25% advance to bank and 75% after 3 months this time will start when we receive goods. after receive goods the entry and when we wll make payment what are the entries and how can i mannage through these entries in lc accounts which is in our chart of accounts.
Menu
Letter of credit
Replies (1)
The L/C is another Credit faciity extended by Bank . So, we can route all the entries thro' Debtor's account.
The advance paid by the customer can be treated in Debtor's a/c or in Advance account and pass the journal entry at the time of full amount realised thro' L/C.
As the payment is assured after 3 months the 75% outstanding can be shown in the customer's Ledger.
Recent Threads
- 44ADA Business code 14005
- How to rectify Form 67 that is already submitted
- Which year to consider for Property tax if sold af
- Itr form for nil tax return
- FSI & FA for RSU Sale in ITR-2
- Capital gains taxation query vip 1
- TDS on sim card calling service
- ITC Claim 2024-25
- Transferring online money to father
- AY 2025-26 ITR 1,2 reg
Related Threads
CAclubindia
