Adjusted Trial Balance Meaning An adjusted trial balance is a document that summarises all current Accounts balance accessible in general ledger accounting. After correcting entries have been completed, the adjusted trial balance is created to reflect revised balances. The sixth stage in the accounting cycle is to prepare an adjusted trial balance. An adjusted trial …
What Is An Adjusted Trial Balance meaning , types Read More »
definition of Allowance For Doubtful Accounts An allowance for doubtful accounts is a “counter asset” since it decreases the quantity of an asset, in this instance, accounts receivable. The allowance, also known as a bad debt reserve, indicates management’s projection of the number of accounts receivable that consumers will not pay. If real experience varies, …
Allowance For Doubtful Accounts, definition and journal entries Read More »
Definition of Bank Overdraft The term “bank account overdraft” refers to the situation in which an individual’s bank account balance drops to zero or below, resulting in a negative balance. It often occurs when there is no more money available in the account in question. Yet, an outstanding transaction is completed via the account, resulting …
Bank Overdraft Definition In Accounting, jouranl entry and how to avoid it Read More »
What is a Bank Guarantee, and why is it essential in projects? Bank Guarantee Definition Lending institutions provide bank guarantees as a kind of financial insurance as a guarantor. It indicates that the lender will guarantee that a debtor’s obligations will be satisfied thanks to the bank guarantee. That is to say, if a debtor …
Bank Guarantee Definition, Types, Extension, cancellation and Charges, fees entry Read More »
Letter Of Credit Process The Importer arranges for an LC to be opened in the Exporter’s favor by the issuing bank. The LC is sent from the issuing bank to the nominated bank, then sent to the Exporter. The products and documentation are delivered to a freight forwarder by the Exporter. The process of LC …
Letter Of Credit (LC) In International Trade A Letter of Credit is a contractual promise made by the foreign buyer’s bank to pay the Exporter after the items have been shipped. The necessary paperwork has been shown to the Exporter’s bank as evidence of shipment. Letters of Credit are a kind of trade finance instrument …
What Are The Different Types Of Letters Of Credit? Several different types of letters of credit (LC) is commonly used in commercial transactions. We are categorizing them based on their intended use. Commercial, Export/Import, Transferable and Non-Transferable, Revocable and Irrevocable, Stand-by, Confirmed, And Unconfirmed, Revolving, Back to Back, Red Clause, Green clause Clause, Sight, Deferred …
What Are The Different Types Of Letters Of Credit? Read More »
How Does The Letter Of Credit Work, For Example? Assume Mr. David (an English exporter) has a contract with Mr. Strac (an American importer) to send items. Unknown parties agree to an LC arrangement. The letter of credit ensures Mr. David of payment from the customer and Mr. Strac of a structured and recorded process, …
How Does The Letter Of Credit Work, Example, cancellation and loanaganist LC Read More »
How Important Is A Letter Of Credit To The Exporter? An exporter can use a letter of credit to ensure that he receives the whole Amount specified in the LC, which aids the seller in planning future business ideas. Another benefit of a Letter of Credit transaction is that the money is delivered on …
What Is Meant By A Letter Of Credit? Companies utilize letters of credit as a financial tool to ease import/export transactions. These letters are documentation issued by the Importer’s bank (issuing bank) to guarantee the imported goods payment. The letter is written and sent to the Exporter’s bank (accepting bank) to represent an agreement to …
Letter of Credit Meaning, Amended After Expiry and Bank charges Calculation Read More »
