Information about Accounting treatment of LC

Information about Accounting treatment of LC - Printable Version

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Information about Accounting treatment of LC - zulfi721 - 02-28-2011

Can any body guide me about the accounting treatment of LC.as far as i know a LC account is opend & all expenses incurred on the LC are debited the LC account....LC could be for Fixed asset purchase or inventory purchase....early response would be appreciable....

- zulfi721 - 03-29-2011

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by zulfi721
 Can any body guide me about the accounting treatment of LC.as far as i know a LC account is opend & all expenses incurred on the LC are debited the LC account....LC could be for Fixed asset purchase or inventory purchase....early response would be appreciable....
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can any help regarding the above question

- Moamar Qazafi - 06-14-2011

<blockquote id="quote">quote<hr height="1" noshade id="quote">Originally posted by zulfi721
 Can any body guide me about the accounting treatment of LC.as far as i know a LC account is opend & all expenses incurred on the LC are debited the LC account....LC could be for Fixed asset purchase or inventory purchase....early response would be appreciable....
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i dont knw much abount accounting but mu limited knowledge says that if you purchse fixed asset then cost of LC will be capital expenditure and will be debited with that particular asset and if the LC is for Goods then this will be a revenue expenditure and will be treated as expense