How to Record LC Cash Margin Release
Records the return of collateralized cash to unrestricted accounts after the LC expires or is settled.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash | Asset | 15,000.00 | - |
| Restricted Cash - LC Margin | Asset | - | 15,000.00 |
💡 Accountant's Note
Moves funds from a restricted bank account back to the operational account once the trade obligation is fulfilled.
Practitioner & Systems Framework
💻 ERP Architecture
Perform a bank transfer journal between the restricted and unrestricted cash sub-accounts.
⚠️ Audit Flags
Restricted cash balances that remain on the books long after the associated trade deals have closed.
📄 Required Documentation
Bank release notice or evidence of LC expiry/payment.
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