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Entry regarding Bank Guarantee.

Chaitanyaa (Student) (166 Points)

09 December 2023

A company "ABC Ltd" requested its bank to issue Bank guarantee in favour of supplier for purchasing stock. The bank issues the BG.
what entries will be passed by the company ABC Ltd in it's books.
Thnx.

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4 Replies

Yasaswi Gomes new (Finance ) (4514 Points)
Replied 10 December 2023

Bank guarantee is a disclosure i think

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sabyasachi mukherjee (27579 Points)
Replied 11 December 2023

Bank guarantee is a financial instrument.

Yasaswi Gomes new (Finance ) (4514 Points)
Replied 11 December 2023

Do you think letter of credit is also a financial instrument. Its a contract. Ok ill check as principles tomorrow. Financial guarantees are differeny from but similar to bank guarantee.

Yasaswi Gomes new (Finance ) (4514 Points)
Replied 13 December 2023

https://www.rbi.org.in/commonperson/English/Scripts/Notification.aspx?Id=318

It is contingent in nature. Soike i guessed, its a disclosure or do nothing. Search google or caclub here cause i remember reading abojt it once. Im busy searching for jobs bye