Suppose company A purchases goods from company B. As per terms,company A requires a bank garantee for this purchase. So,in his bank,he has a bank guarantee. Now my question is whether this bank guarantee is needed to show as contingent liability in the books of A Ltd? Please help me.
Menu
Letter of credit
Replies (2)
yes certainly.
but why? i mean we are providing a liability and if we fail to pay,then there will be automatically payment of that liability.
there is certain obligation and certain outflow of assets.
Recent Topics :
- On which amount 200% penalty under section 270A is
- RECEIVED INTIMATION U/S 399 FOR TDS PAYMENT ON PRO
- How do CA firms track SEBI/AMFI circulars and dead
- Jurisdictional validity of Sec 148 notice after fa
- Taxable Income or Not
- GST Input Tax Credit (ITC) on Camera Purchase &
- What makes CA Himanshu Singla different from other
- TAX TREATMENT AND ACCOUNTING ENTRIEOF PERQUISITES
- Gifting money to my father-in-law (my husband's da
- GSTR-1 JSON from marketplace exports (Myntra / Ama
Related Topics :
CAclubindia
