Bank guarantees

Yasaswi Gomes new (Finance ) (4514 Points)

16 December 2023  

Hi,

 

With just one post I wanted to demystify  bank guarantee doubts globally

 

Bank Guarantee is not entered in the books of accounts. As per Part 3 to Schedule VI of the Companies Act, 1956, BG should be shown by way of discloser as Contingent Liabilited in Annual Report of the Company. Hence No entry is passed at all.

 

Txs