Construction
Letter of Guarantee (LG) Cash Margin
Recording cash blocked by the bank as collateral for issuing a performance or advance payment guarantee.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Restricted Cash (LG Margin) | Asset (+) | 10,000.00 | - |
| Cash in Bank | Asset (-) | - | 10,000.00 |
💡 Accountant's Note
Banks often require contractors to block 10-30% of the guarantee value as cash collateral. This is still the contractor's asset — it is reclassified from unrestricted cash to restricted cash.
Professional Excel Template
Get the automated version of this entry. Includes built-in IFRS checks, VAT calculators, and SAP-ready upload formats.
QA
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.