0
LC = Payment thru Letter of Credit
DA = Payment against acceptance
DP = Payment against receipt of document
TT = Telegraphic transfer
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
Is the drawee banker require the acceptance of applicant for payment of sight LC?
no
What is the meaning of LC in accounting?
LC Means letter of Credit. It is a negotiable instrument to make payment through bankers of both parties, i.e. Payer & Payee
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 the difference between back to back letter of credit and transfer letter of credit?
back to back credit is a seller financing tool where seller goes to his bank for amendment of the master lc and get issued another lc in favor of the main supplier and also it is a LC where main buyer does not get to know that who is main supplier .Bank which issues the back to back LC undertakes a definite payment obligation under L/C law and practice, while the bank that transfers a transferable L/C does not obligate to pay. Instead, the transferring bank usually pays after receipt of issuing bank's payment under the transferable credit.a transerable is cannot be transferred until or unless it is mentioned in the master LC as tranferable.
What is a LC opening?
what is lc opening?
What is the meaning of LC payment?
Letter of Credit payment
What is the meaning of lc?
Letter of Credit payment
Difference between Export LC and import lc?
An import LC is one made with reference to the buyer but with an export LC, the LC is changed to that with reference to the Issuing bank. This gives a stronger guarantee of payment to the seller.
Is the drawee banker require the acceptance of applicant for payment of sight LC?
no
What is the meaning of LC in accounting?
LC Means letter of Credit. It is a negotiable instrument to make payment through bankers of both parties, i.e. Payer & Payee
What is negotiation of documents under LC under reserve?
The documents presented under a documentary credit are scrutinized as per the International standards of scrutiny and negotiated if they strictly comply with the LC terms. This is called a clean negotiation. On the other hand if the documents do not comply with the LC terms and discrepancies are found, the negotiating bank may still opt to give value under the LC by paying or incurring a deferred payment obligation as per LC provided the beneficiary undertakes to indemnify the negotiating bank in the event of rejection by the LC opening Bank. This is technically called a payment under reserve. The Reserve will be lifted on acceptance of discrepancies by the LC opening Bank.
What is the difference between LC and DA?
DA mean documents against acceptance, where company give acceptance to pay their liabilities on due date, but he can pay remit the DA before its due date , but in case of Letter of Credit, UCP are not allowed to pay the LC liabilities before its due date. Thanks Anup Das
What is the difference between usance and deferred payment LC?
No difference as both are alternate names of each other
What are the payment terms L C or PDC or CDC?
LC - letter of credit PDC - post dated cheque CDC - current dated cheque
What is the meaning of Payment will be effected provided the stipulated documents are presented and terms and conditions of the LC are complied with?
It means the bank will release your money after they approve your document presentation and get approval from the applicant of the letter of credit. If all documents are included and comply with the instructions of the LC, payment can be released according to the payment schedule (i.e. "Draft at 30 days after ship date").
Why used deferred lC?
Deferred LC is very usefull for both importers and exporters. 1-Importer does not hav to pay in-advance when uses deferred lc 2-but exporter guarantees that he will get the payment in a certain time after shipment and also if he wants he can discount in on the same day or on any days when the LC is booked. 3- deferred LC helps to the buyer who does not have cash but has credit in his bank 4- deferred LC helps to the seller, so he does not have to look for a buyer who has only cash money.He can discount the LC with a very low cost anytime.
Calculation of lc confirmation charges?
LC confrmation charges is the charges paid to confirmation bank and born by the applicant, normally a confirmaton bank is bank which give the payment on the presentation of documents by applicant,s bank
