Accounting Treatment of Export LC | Accounting Treatment of Sales Contract

RMG Life Information

Accounting Treatment of Export LC is given form Buyers. Its very important to how will you enter the entry in our software/general ledger/manually. If you are responsible to maintain the RMG accounts. So obviously have to maintain to proper Accounting treatment the Export LC is given form buyer. 
Example: Date- 01/01/2016 H&M Submit the order to BCL 5000Pcs @ $4.50 & also confirm the Export LC by bank $22,500.00. after given the order BCL Export the order 3500Pcs date-05/05/2016 after receiving the goods H&M send the T.T/Bill of Exchange by the bank date- 15/05/2016, $15,750.00 and the T.T/Bill of Exchange amount has realized end of the month. The accounting treatment as below:-

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ParticularsAmount $Amount $
a) Export LC given from Buyer-
Assets (Debtors)H&M Buyer A/C (Export LC)Dr.       22,500.00
LiabilitiesUnearned Export R/V A/C Cr.       22,500.00
b) Goods Export to Buyer-
LiabilitiesUnearned Export R/V A/CDr.       15,750.00
IncomeExport R/V A/CCr.       15,750.00
c) T.T/Bill of Exchange Received from Buyer-
AssetsBill Receivable A/C (T.T)Dr.        15,750.00
Assets (Debtors)H&M Buyer A/C (Export LC)Cr.       15,750.00
d) Realized the amount by the bank-
AssetsBank A/CDr.        15,750.00
AssetsBill Receivable A/C (T.T)Cr.        15,750.00
Equation AssetsLiabilities+Income
Si #H&MBill ReceivableBank=Unearned Export R/VExport R/V
a)    22,500.00     22,500.00
b)   (15,750.00)   15,750.00
c)  (15,750.00)    15,750.00
d)  (15,750.00)   15,750.00
Total       6,750.00                    –     15,750.00        6,750.00   15,750.00
Accounting Equation

How to Caculate Import stage duty CD, RD, SD, VAT, AIT & ATV?

How to calculate import stage duty is most important to any countries. when you import any product you may imposed import duty by the government. The duties are source of income of government.

AV=> Assessable Value.
CD=>Customs Duty.
RD=> Regularity Duty.
SD=> Supplementary Duty.
VAT=> Value Added Tax.
AIT=> Advance Income Tax.
ATV=> Advance Tread VAT.

B/ New Nissan Almera Sedan Car 1500CC Asses-sable Value after adding insurance & handling charge. Vehicle Management Software is essential.

TypeTax baseRate %Amount
CD      1,239,945.4225%     309,986.36
RD      1,239,945.424%       49,597.82
SD      1,599,529.5945%     719,788.32
VAT      2,319,317.9115%     347,897.69
AIT      1,239,945.425%       61,997.27
ATV      2,937,879.994%     117,515.20
Total Declaration   1,606,782.65
Tk.Total Declaration 
AV      1,239,945.42
Add. CD @25%         309,986.36            309,986.36
Duty paid Value      1,549,931.78
Add. RD @4% on AV           49,597.82             49,597.82
AV, CD & RD Value      1,599,529.59
Add. SD @45% on AV, CD & RD Value =         719,788.32            719,788.32
Base value on VAT      2,319,317.91
VAT @15%         347,897.69            347,897.69
AIT @5% on AV           61,997.27           61,997.27
ATV @126.67% on Base  Value of muilply @4%         117,515.20            117,515.20