Letter of credit interest under which head of account

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 August 2012 Dear Sir.

we have partnership firm,, under one of sales we going with Letter of Credit facility....& we received the interedt on it...now we want to know undred which accounting head it's come.

regards,
amol dhuri
accountant
jain sales corporation

U S Sharma

U S Sharma (Expert)
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06 August 2012 interest on overdue bills (for interest received for delay in payment receipt)credit entry.

if you have discounted the bills, and paid interest to bank then it would be debited as bank interest.