JOURNAL ENTRIES IN CASE OF LOSS OF GOODS

First you need to crate following account 1. Loss of Goods: (Under Purchase Group) : you need this in case of loss of traded goods. So that inventory could be nuterilised 2. Loss of Goods by Fire and/or Theft: you need this account to transfer your loss to profit and loss account. You need to…


Journal Entry for Guarantee

Journal Entry of ¬†Guarantee Guarantee is an undertaking in writing for performance of another person or obligation in case of default by person primerly responsible for act.Guarantee is a non fund based limit sanctioned by bank or financial institution. AS 29- Para 10.4 “Provision, Contingent Liabilities and Contingent Assets”- A contingent liability means: (a) a…


Accounting Entries for Letter of Credit (LC)

Journal Entries For Letter of Credit Commonly Known As : L C Letter of Credit: Letter of Credit is a credit letter from bank assuring/guaranteeing of a buyer payment to a seller (Business Transaction). Buyer payment to a seller will be clear on time in specified currency with specified amount subject to fulfill defined conditions…