Export Bill Discounting

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2010 Hi I am working in one export company. Here we have 10 Mio usd of Debtors. We want to discount the same from Bank. My Queries is how to show the transaction in our books of account. Transaction will flow like this. We will discount the bill from bank, Bank will remit us the money and due on due date Customer bill remit the money and bank will knock off that realisation with bill discount. From the day whenbank has given the money and the day when they recd the money from Buyers, they will charge the interest for that period. Pls suggest the entries for the same.

CA. Aryendra

CA. Aryendra (Expert)
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19 November 2010 In case of EXPORT bank maintain party wise FBP account. You can open FBP account in books.

Bank CC/Current A/c Dr
To FBP A/c

Being Bill no so discounted from bank)