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Accounting Treatment of Export LC | Accounting Treatment of Sales Contract

Plus and Short Shipment Bonus and Penalty Incentive Calculation

Plus and Short Shipment Bonus and Penalty Incentive Calculation

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
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