General
Cash Margin for Bank Guarantee (LG)
Recording the cash frozen by the bank as collateral for issuing a Letter of Guarantee (common in Jordan tenders).
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Restricted Cash (LG Margin) | Asset (+) | 5,000.00 | - |
| Cash in Bank | Asset (-) | - | 500.00 |
💡 Accountant's Note
When a bank issues a guarantee (LG) for a project, they often 'block' a percentage of the amount in your account. This is still your asset, but it is 'Restricted' and cannot be spent.
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