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…