What is letter of credit?
Answers were Sorted based on User's Feedback
Answer / jyoti khattar
It is a document issued by a financial institution on behalf
of its client(buyer) to the seller in international trade
representing buyer's obligation for payment.
Is This Answer Correct ? | 13 Yes | 2 No |
Answer / h.r. sreepada bhagi
Letter of Credit (LC) is a commitment document by a bank or
financial institution to a Vendor/Supplier of goods
(Domestic or International) on behalf of the purchaser, to
pay the money on receipt of the intended goods specified in
the relevant documents as per the agreement between the
buyer & the supplier.
The LC is issued by the Bank/FI on receipt of LC application
and supporting documents (like agreement,quotation/Proforma
Invoice, etc.)and transmitted to the bank of the supplier.
Once the goods are supplied as per the Purchase Order & the
supply terms agreed up on while contracting, the supply
documents shall be submitted by the supplier to their/his
bank, who in turn will verify & forward it to the buyer's
banker. The buyer's banker verifies the duouments, and
remits the money to the supplier's banker, if the documents
are in order as per the Letter of Credit issued earlier. In
case of any discrepancy, it will be dealt with as per the
terms of the LC.
Is This Answer Correct ? | 5 Yes | 1 No |
How can i download International accounting Standards (IAS ) (41) from the internet in PDF format .Please can u tell me site name.
As per the accounting what do you mean by Fixed Assets?
Whats is Cash Flow Statement why its is prepare ?
How to calculate turnover of a company?
what in contingent liabilities
What is petty cash and main cash book? Diff b/w them
Expand ________BPO
what Bank Reconcilation ?
I am going to attend an interview for the post of jr. Accounts Officer in airport authority of india,pls help me to prepare for the interview??
What is cost accounting?
Expand-------------BRTS
What is BRC & FIRC