letter of credit accounting treatment for importer?
2 Replies
(Guest)
The LC opener have an bank limit for open a LC and when the LC got matured the bank Pay the Bill amount (if any bill raised against this LC) and debited charges to your CC A/c.
LC opener doesn't required to make any entry in books, only charges debited by bank for LC Opening (Like Commission etc) can be debited to Bank Charges A/c in Books. Any way if you wants to control the LC limit then Make debit the LC Amount (FC x Exchange Rate) to your LC account and credit to LC Control account, when LC matured or paid make reverse of the entry
>> Rajesh
Recent Topics
- Making payment once in quarter possible under QRMP
- Master File Documentation related
- Applicability of 44AD needs clarification
- ITC reversal in GST 3B
- Claim if ITC on stocks 19-2020 conversion from com
- Urgent doubt on GST
- Profit or Loss on Sale of Assets Accounting treatm
- Clarification on RCM on Rent Payment for QRMP Deal
- Reclaimed itc in gstr9
- Gamification in Accounting Software: Boosting Enga
Related Threads
CAclubindia
