What is letter of credit?
- 2 Answers
- 5581 Views
- State Bank Of India SBI, I also Faced
- E-Mail Answers
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 |
EXPAND_________TAN
can debenture is cenverted into share?if yes? how?
what is the formula for profit margin?
how to download online - old ECR CHALLANS
what is accounting
Plz Give the Inventry Accounting Procedure 1.Domestic Purchases ( VAT,CST,& Excise) 2.Import Purchases ( Direct Expences & Excise ) 3.When Will the Price Diffrence Entry Happen? 4.Cash Discount & Trade Discount On Purchases? 5.Domestic Sales ( VAT,CST,& Excise) 6.Export Sales ( Customes ,Excise ) 7.Cash Discount & Trade Discount On Sales?
what is day book and how it is different from ledger
what is the difference beetwen trade discount and rebate & discount
5 Answers Chartered Accountant, Punjab and Sind Bank,
Expand---------RTC
what is the difference between Tally ERP and SAP FI ECC?
What are intangible Assets?? ASKED 12.12.2008
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
Audit 
