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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
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