How to Record Bank Guarantee Closure Fees
Records the administrative charges applied by the bank when a guarantee is cancelled or expires.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Guarantee Service Fees | Expense | 200.00 | - |
| Cash at Bank | Asset | - | 200.00 |
💡 Accountant's Note
Administrative fee charged for the formal closure of a trade guarantee and the release of any associated contingent liability.
Practitioner & Systems Framework
💻 ERP Architecture
Update the contingent liability module to reflect the closure of the guarantee.
⚠️ Audit Flags
Confirm the guarantee was actually released to avoid paying fees on active facilities.
📄 Required Documentation
Bank cancellation advice and evidence of return of the original guarantee instrument.
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