Construction
Letter of Credit for Material Import
Opening a documentary letter of credit with the bank to import specialist materials from abroad.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Restricted Cash (L/C Margin) | Asset (+) | 50,000.00 | - |
| Bank Charges (L/C Fee) | Expense (+) | 1,000.00 | - |
| Cash in Bank | Asset (-) | - | 51,000.00 |
💡 Accountant's Note
A Letter of Credit guarantees the overseas supplier payment. The bank charges a fee (typically 1-2%) and may require a cash margin to be blocked as collateral.
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