How to keep the deposit of the letter of credit?
Letter of credit deposit, also known as letter of credit deposit, refers to the money deposited into the bank's letter of credit deposit account in order to obtain a letter of credit.
When an enterprise pays a deposit to a bank, it shall debit the account of "other monetary funds-letter of credit deposit" and credit the account of "bank deposit" according to the first bill returned by the bank. According to the amount specified in the letter of credit arrival notice and the relevant documents submitted by the issuing bank, debit the subjects such as "goods in stock", "tax payable-value-added tax payable (input tax)" and credit the subjects such as "other monetary funds-letter of credit deposits".
1. When paying the deposit:
Borrow: other monetary funds-letter of credit deposits
Loans: bank deposits
2. When the enterprise receives the letter of credit, settlement voucher and invoice bill from the supplier of the issuing bank:
Borrow: raw materials, etc. (credited to the corresponding account according to the business and invoice content)
Taxes payable-VAT payable (input tax)
Loans: other monetary funds-letter of credit deposits
3. When transferring the unused deposit balance of the letter of credit back to the opening bank:
Debit: bank deposit
Loans: other monetary funds-letter of credit deposits
What are other money funds?
Other monetary funds refer to the monetary funds of an enterprise other than cash and bank deposits. It includes foreign deposits, bank draft deposits, bank promissory notes deposits, investment deposits, letter of credit deposits and credit card deposits.
Other monetary funds "belong to the asset class. In order to reflect and supervise the income and expenditure and balance of other monetary funds, enterprises should set up the subject of "other monetary funds", in which the borrower registers the increase of other monetary funds, the lender registers the decrease of other monetary funds, and the ending balance is in the debit, reflecting the amount of other monetary funds actually held by enterprises.