138 collected from the customer on demand, the bank reimburses itself by disposing of the security deposited by the customer. 5.1.3.1 Drafts and telegraphic Remittances: When a bank issues a bank draft on another bank or on its branch, it credits the account of the bank or that of the branch with amount of the draft. The corresponding debit is raised in the account of the customer. His account is also debited with the remittances. A similar procedure is adopted in case of telegraphic transfer made on account of customers. 5.1.3.2 Letters of Credit and Travellers' Cheques: These are issued as a facility to travellers within the country or abroad. In either case, the person desiring such instruments of credit, to be issued in his favour or some other party is made to deposit the full value of the letter of credit or travellers' cheques issued in his favour. The amount deposited by the customer is placed to the credit of Letters of Credit Account or Travellers' Cheques Account, as the case may be. When the bills of Exchanges drawn against the Letters of credit are received for payment, the amount is debited to the Letter of Credit Account. Similarly, the travellers' cheques, when presented are debited to the Travellers Cheque Account. In the case of customers desiring travellers' cheques in a foreign currency, the equivalent value thereof in home currency in collected from them at the rate of exchange prevailing on the date of issue of the traveller's cheque and the bank either purchases immediately the amount of foreign exchange equal to the value of the travellers' cheque issued, or transfers out of its balances of foreign currency an amount equivalent to the value of travellers' cheques to the Travellers' Cheques Account. In the case of letters of credit in foreign currency, the same procedure is followed. The transactions entered into for rendering other services e.g., collection of dividend and interest, making periodical payments etc. do not involve any complicated accounting. Basically, when any amount is collected for a customer as dividend or interest, his account is credited and cash is debited. Correspondingly, wherever any payment is made on account of a customer, his account is debited and cash is credited. Usually a separate charge is made for such a service. Illustrauono From the following details prepare "Acceptances, Endorsements and other Obligation A/c as would appear in the General Ledger. On 1.4.2013 Acceptances not yet satisfied stood at 22,30,000. Out of which 20 lacs were subsequently paid off by clients and bank had to honour the rest. A scrutiny of the Acceptance Register (for transactions during the year) revealed the following: ClientAcceptances/GuaranteesRemarks B D E F Total 10,00,000 12,00,000 5,00,000 8,00,000 5,00,000 2.70.000 42.70,000 Bank honoured on 10.6.2013 Party paid off on 30.9. 2013 Party failed to pay and bank had to honour on 30.11.2013 Not satisfied upto 31.3.2014 -do- -do