Construction
L/C Settlement — Materials Received
Releasing the L/C and recording the materials when the supplier's shipping documents are presented.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Material Inventory / WIP | Asset (+) | 200,000.00 | - |
| Restricted Cash (L/C Margin) | Asset (-) | - | 50,000.00 |
| Cash in Bank (Balance) | Asset (-) | - | 150,000.00 |
💡 Accountant's Note
When the shipping documents are presented and accepted, the bank pays the supplier and the materials are received into inventory. The L/C margin is released.
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