Can anyone please tell me the accouting entry for a bank issuing Letter of Understanding for trade credit in terms of buyers credit
Amita Panchal (Service in Finance) (46 Points)
31 May 2009Can anyone please tell me the accouting entry for a bank issuing Letter of Understanding for trade credit in terms of buyers credit
Amol Gopal Kabra (CA,CS,DISA)
(Practicing CA)
(8539 Points)
Replied 01 June 2009
There will not be any entry on issuing the letter. Because only on the issuing the letter the transaction doesnot take place. The entry will be done when the transaction is effected. However, on issung the letter, the entry can be made for the charges paid to the bank for the letter.
Amita Panchal
(Service in Finance)
(46 Points)
Replied 01 June 2009
CAclubindia
