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What are the necessary journal entries passed while opening the letter of credit?
The following entries you can pass while opening LC's. You can open a control account to maintain how many LC's are opening and settling Example ABC company establishing an LC on the Supplier XYZ company for $ 300,000 in SCT Bank You can open a control account to keep the track of all your LC Transactions is that is opening and closing First Entry: XYZ Company Dr $ 300,000 to SCT Bank LC Establishing Account $300,000(Control Account) Being LC establised in the SCT Bank Second Entry: When you accept the LC ( Liability) that means your goods reached your port and bank send you documents arrival advice SCT Bank LC Establishing Account $ 300,000 (Control Account) SCT Bank LC Acceptance Account $ 300,000 (Liability Created) Third Entry: SCT Bank LC Acceptance Account Dr $ 300,000 To SCT Bank Account (Amount Settled to Party) Fourth Entry Purchase A/c Dr $ 300,000 XYZ Company $300,000 First entry you debited Xyz Company and Fourh Entry you Credited First Entry You Credited SCT Bank LC Establishing Account and Second Entry you credited Second Entry you credited LC acceptance account and Third entry you debited Fourth Entry you Debited purchases and Credited Bank that means your total LC recorded from the opening to settling.
What is the journal entry when open a Letter of credit?
Journal Entry - LC & Imports!! You will have to pay LC Margin to Bank. At that time you will have pass this entry! LC margin with the Bank - (Advances) - Debit - XXX Bank - Credit - XXX When LC is realized! Bank is going to charge you Commission. Other part is payment against the imports, which is going to be normal entry. If we club both entries, here it is given LC Commission expense-Debit XXX Purchases / Stock / Inventory - Debit - XXX Vendor - Credit - XXX Bank - Credit - XXX LC margin with the Bank - ( Advances) - Credit - XXX Regards
What is a LC opening?
what is lc opening?
What is the journal entry for deposit to bank account for beginning a business?
Journal entry for opening a bank account
What is the Journal entry for opening stock?
don t known
What are the necessary journal entries passed while opening the letter of credit?
The following entries you can pass while opening LC's. You can open a control account to maintain how many LC's are opening and settling Example ABC company establishing an LC on the Supplier XYZ company for $ 300,000 in SCT Bank You can open a control account to keep the track of all your LC Transactions is that is opening and closing First Entry: XYZ Company Dr $ 300,000 to SCT Bank LC Establishing Account $300,000(Control Account) Being LC establised in the SCT Bank Second Entry: When you accept the LC ( Liability) that means your goods reached your port and bank send you documents arrival advice SCT Bank LC Establishing Account $ 300,000 (Control Account) SCT Bank LC Acceptance Account $ 300,000 (Liability Created) Third Entry: SCT Bank LC Acceptance Account Dr $ 300,000 To SCT Bank Account (Amount Settled to Party) Fourth Entry Purchase A/c Dr $ 300,000 XYZ Company $300,000 First entry you debited Xyz Company and Fourh Entry you Credited First Entry You Credited SCT Bank LC Establishing Account and Second Entry you credited Second Entry you credited LC acceptance account and Third entry you debited Fourth Entry you Debited purchases and Credited Bank that means your total LC recorded from the opening to settling.
What is the journal entry when open a Letter of credit?
Journal Entry - LC & Imports!! You will have to pay LC Margin to Bank. At that time you will have pass this entry! LC margin with the Bank - (Advances) - Debit - XXX Bank - Credit - XXX When LC is realized! Bank is going to charge you Commission. Other part is payment against the imports, which is going to be normal entry. If we club both entries, here it is given LC Commission expense-Debit XXX Purchases / Stock / Inventory - Debit - XXX Vendor - Credit - XXX Bank - Credit - XXX LC margin with the Bank - ( Advances) - Credit - XXX Regards
What is a LC opening?
what is lc opening?
What is the journal entry for deposit to bank account for beginning a business?
Journal entry for opening a bank account
What is the Journal entry for opening stock?
don t known
What is the opening journal entry for paid up capital?
capital
What is the journal entry of the opening stock?
opening stock is the stock at the end of previous year which is being carried forward to next year. so it is treated as opening balance (asset) n the following journal entry will b passed opening stock Dr. to liabilities *if liabilities are not there then capital is to be credited
Why do you need to reverse a journal entry?
According to my understanding and my study in accounting, the reversal of journal entry merely is for the opening balances for a new year of accounting period
What is a opening?
what is lc opening?
What is opening journal entry?
[Debit] cash / bank / goods [Credit] Owner's equity
How do I create a journal entry for opening an account balance?
Debit bank accountCredit cash
How do you record a journal entry for opening a cash account?
debit cash accountcredit bank account
