Answer Posted / 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 |
Post New Answer View All Answers
Define Salry for the following purpose 1.To calculate HRA
what do you mean indirect expanse in trading business?
What is Accounting on Computers
what is the main difference between nse & bse operations
In what cases can Convertible bonds be considerred as derivatives?
what are valuation accounts?
Hello Everbody....this saturday i attended the interview of times job fair...were capgemini has called me for technical round ..I am bcom graduate with tally an SAP FICO....Can any body help me ... I wan to know what is this technical round...An what they may ask me ......if any body have question an answer kindly send to my id ..that is damudi123@yahoo.com....or contact me to my number ..+919900410314.Or any body have friends working in capgemini bangalore?Please i need urgent help...thnak you with regards adnan hasan
How will be prepare invoice in tally, please tell me step by step
While selling fertilisers can we charge VAT on excise duty.
Expand---------OST
what are the different kinds of cash books
How do you set the increment point in appraisal of salaries. It becomes so difficult for the employer to hear again and again about increment
What is ABC Analysis in industrial function. hw can it s maintain ?
emplementation of accounting standerds in Bangladesh, developing or copieng?
Process of the settlement cycle?
