What is the treatment of Letter of Credit in Accounting? What is the journal entry for these?
912312
A letter of credit is drawn on a bank and almost the same as cash, but on extended terms, i.e. 30 days, 60 days etc.  \n\nLetters of credit are used widely by many businesses when selling or purchasing products from overseas with a customer/supplier they do not know.  \n\nHope this helps.
934855
Out of context, they just mean left (debit) or right (credit) on the ledger.\n\nAccounting uses 5 types of accounts. 3 are balance sheet accounts (asset, liability and owners equity accounts) and 2 are income statement accounts (revenue and expense accounts). \n\nThe balance sheet has asset accounts on the left and liability and owners equity accounts on the right.  The income statement has revenue accounts and expense accounts.  Think of income statement accounts as sub-accounts in the owners equity section of the balance sheet and the debits and credits will make more sense.\n\nAsset accounts normally have a debit balance, so debits increase an asset account and credits decrease an asset account.\n\nLiabilities and owners equity accounts normally have a credit balance, so credits increase a liability or equity account and debits decrease a liability or owners equity account.\n\nThe basic accounting formula that must hold true at all times is:\n\nAssets = Liabilities + Owners equity  \n\n(that's why it's called a balance sheet!)\n\nAll accounting transactions are recorded using double entry bookkeeping where the total of the debits must equal the total of the credits.  One side of a transaction may increase one asset while decreasing another. This would happen when cash (an asset) is paid for inventory (another asset). Inventory is debited and cash is credited.  If the company buys inventory on credit, then the transaction would be: Inventory is debited and Accounts Payable is credited. Accounts Payable is a liability account. When that bill gets paid: Accounts payable is debited and cash is credited.\n\nRevenue increases owners equity, so a revenue item is a credit. Expenses decrease owners equity, so an expense item is a debit. If expenses exceed revenues for a period, it is a loss and a net debit. (It reduces owners equity) If revenues exceed expenses for a period, it is a profit and a net credit. (It increases owners equity.)
267700
there r documentary letter of credit and standby letter of credit. basically the verbiage of the l/c states whether it is transferrable, assignable, etc. BUT, you have to dig deeper or shall we say, VERIFY. There are so many fakes out there. pls get in touch with me
553292
Use a T account. \n\nDebits\n   March Credit Sales  $28,000\n   April Credit Sales   20,000\n   May Credit Sales    24,000\n\nCredits  \n   Mar sales collected in march  (8,400) \n   Mar Sales collected in april  (18,200)\n   Mar Sales write off in april  (1,400)\n\n   April Sales collected in april(6,000)\n   April Sales collected in may  (13,000)\n   April Sales write off in may  (1,000) \n\n   May Sales collected in may   (7,200)\n  \n   BALANCE AS AT MAY 31       $16,800\n\nEach month debit the account with 80% of the month's sales. (these will be your credit sales)\n\nEach month credit the account with 30% of the month's credit sales, 65% of the previous month credit sales and write off 5% of the credit sales of the previous month.
677208
Broadly, accounting is defined as the systematic recording, reporting, and analysis of financial transactions of a business. \n\nThere are different types of accounting, namely: Financial Accounting, Tax Accounting, Cost Accounting and Managerial Accounting.\n\nFINANCIAL ACCOUNTING is defined as “measuring and recording business transactions and providing financial statements that are based on generally accepted accounting principles. It focuses on external reporting. \n\nFinancial statements (financial data) tell us (1) the financial position of an entity at a certain date and (2) the results of its operations (profit/loss) and the changes in its financial position and variations in stockholder's equity (investment) in a period of time. (Historical information/past events).\n\nFinancial accounting aims at satisfying the interest of the "general user" which may include: shareholders, government agencies, creditors, and the general public.\n\nMANAGERIAL ACCOUNTING. Measures and reports financial and non-financial information that helps MANAGERS make decisions to fulfill the goals of an organization. It focuses on internal reporting. \n\nCOST ACCOUNTING is an information system that classifies, accumulates, controls and assigns costs to determine costs of activities, processess or products, facilitating decision making and managerial planning and control.\n\nCost accounting plays a role in both managerial and financial accounting. Some authors describe Cost Accounting as a unifying point between Managerial and Financial Accounting.\n\nTAX ACCOUNTING is used to communicate information to the appropriate taxing authorities. Generally, the Internal Revenue Service and state tax or revenue boards. It includes the procedures for determining taxes payable and compliance with other provisions of tax laws.\n\nHope this helps...
415529
I believe that it is:\n\nhttp://www.freecreditreport.com\n\nYou can also write the three major credit agancies for your report.  You can do this once/year.
945557
You entitled to an annual report for free from all three credit bureaus.\n\nwww.annualcreditreport.com
419453
Max, it's VERY important how the information is reported on your credit report, as it effects how your credit score is calculate\n\nBelow is what the law says.  I'm amazed at how many people keep getting this wrong.  It's written quite plainly so anyone can understand it.  \n\nThe date for reporting begins on the day you defaulted on the loan.  In your case, once your medical services were finished payment is generally due immediately.  If they send you a bill, there is usually a "pay by" date.  That is your default date.  \n\nIf anyone tells you it's the date of the last transaction, the day you last talked to them, the day you pay it off....they are either wrong or just lieing to you.  \n\nBy the way, if you pay off this debt, be sure to get IN WRITING that they will remove this listing from your report.  Otherwise, all they will do is show the account is paid, but the negative reports such as paid late, or sent to collections, will still remain.  Your credit will still be ruined, even though you paid the debt!  Does that make sense to you?\n\nHere is the law:\n\n\n§ 605. Requirements relating to information contained in consumer reports [15 U.S.C. § 1681c]\n\n(a) Information excluded from consumer reports. Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:\n\n(4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.(1)\n\n(1) In general. The 7-year period referred to in paragraphs (4) and (6)(2) of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is  earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period  beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.\n\nUpdated Reply...\n\nJC, this is another example of what pisses me off with you collectors.  YOU can't read!  Read my message again!  The law I quoted is right from the FTC website, and (to me) is fairly obvious.  Where does it say "last charge" or "last payment in the above paragraphs?  \n\nAnd the ONLY thing that can remain on your credit report for more then 7 years is a Bankruptcy.  We are not even discussing that, so why scare people by bringing that up?  \n\nAgain, I will ask you to point me to a source for your information.  I will not accept "because I'm a professional bill collector".  This only proves my point!  If you need more evidence, I will be happy to point out FTC commission position papers, case laws, and state laws that prove you wrong.\n\nEvery response I have seen from you in this forum is always the same. "Pay your bill!".  God!  You make a great collection agent!  You got that part memorized.  But what do you say to the 75 year old lady who just spend 3 months in the hospital and is now $25,000 in debt for medical bills, and can't make that $100 credit card payment?  Oh yeah, right...."Pay your bill!".
1176007
Form a corporation.  Then apply for credit.
1186750
WHAT THE HECK DOES THIS HAVE TO DO WITH CREDIT
549520
closing entries are necessary end-of period steps to complete the accounting cycle and prepare the accounts for recording the transactions of the next accounting period.\n\nstep 1: Close Credit Balances in Revenues to Income Summary\n(Debit Revenue, Credit Income Summary)\n\nstep 2: Close Debit Balances in Expenses to Income Summary\n(Debit Income Summary, Credit Expenses)\n\nstep 3: Close Income Summary to Owner's Capital\n(Debit Income Summary, Credit Owner's Capital)\n\nstep 4: Close Withdrawals to Owner's Capital\n(Debit Owner's Capital, Credit Withdrawals)
369085
you write to whom you want to pay. If you are not sure of the company name that you are going to write it to. Somtimes companys have one name but, they go by another. You can leave it blank but, if you are going to mail it then I would write a name on it.
458559
an invoice is a bill or statement of what you owe for a product or service
315291
Reports of past credit activity/accounts remain on your report "even after they have been transferred/cancelled/paid off/closed, whatever. The little stars that mark your "on time payments" may even continue to be added until some future date when they decide to remove or settle the older acccounts that no longer have bearing on your credit worthyness. Look at the section in the beginning of the report where it sums up all of the accounts. Make sure that the accounts you mentioned have no negative effect on your credit worthyness. Another thought is that you may have come across a composite report that takes two or three of the major credit bureaus and compiles their data into a "report." This could appear as if accounts are doubled. \n\nBut also be aware, mistakes do happen with credit reporting and sometimes it is a good idea to give them a call for a bit of clarification.
773366
A letter of credit is much like a credit card, but issued to a particular party and for a particular amount, usually quite large.\n\nFor example, imagine a contractor wants to build a building for a real estate developer, a large building.  The developer doesn't really know the financial capabilities of the contractor and wants to make sure they can do what they say.  Imagine the building is a $1 million building.  So the contractor goes to the bank and gets a letter of credit for $1 million so that if the contractor fails to complete the task to the satisfaction of the developer, the developer can draw down on the letter of credit and hire someone else to finish the task.  The contractor will owe the writing bank any funds drawn down on that letter.
819437
For a trading account you need to show the results of trading ( ie buying and selling of goods ) in order to ascertain the gross profit  or gross loss of your business.\nNow this means you need to use only those transcations which are directly connected with goods.\n\n\nA profit&loss account is prepared after the trading account and it ascertains the net profit and loss for a particular period .\nThe net profit is the surplous you have in your hands after charging against gross profit all the expenses including depreciation and other provisions attributed to normal activities of a business (general expenses).\n\nDeferred payments when related to sales of goods for filing in the trading account is debited . The person who has to give you money is the debtor.\nAnd it is his liability and your asset , \nItll always be added to the debit column\n\nPrepaid items are your liability as you have to provide the customer with your service and is added to the credit column as its an advance payment.\nLast year's debt that just turned bad is added to debit column in the P&L account.\n\nI hope you this is of help to you.\n\nHave a nice day.\n\n:)
914491
If I understand this question, you, the company, is paying the creditor the money.  In this case, it would be a decrease to Cash (the asset) listed as a credit, and a decrease to a liability, such as accounts payable, listed as a debit.  In other words, these would the the journal entries:\n                           Debit                Credit\nCash                  1800\n      Accounts Payable                 1800