Construction
Advance Payment Guarantee — Bank Fee
Recording the bank's annual commission for issuing an Advance Payment Guarantee (APG) on behalf of the contractor.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Bank Charges / Finance Expense | Expense (+) | 1,500.00 | - |
| Cash in Bank | Asset (-) | - | 1,500.00 |
💡 Accountant's Note
Clients require an APG before releasing a mobilization advance. The bank issues this guarantee for a fee (typically 1-2% per annum of the guarantee amount), which is an operating finance cost.
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