Question
Journalize the transactions in the books of Busy Bank - Main Branch . On 5/12/2015 Busy Bank, Main Branch received the documents pertaining to documentary
Journalize the transactions in the books of Busy Bank - Main Branch.
On 5/12/2015 Busy Bank, Main Branch received the documents pertaining to documentary credit no. 555/2015 from American Bank. The documents were in compliance with the letter of credit. The exchange rate on that date was; buy Fils 708, average Fils 713, sell Fils 718. The particulars of documentary credit 555/2015 were:
Documentary credit no. | Amount in US$ | Deposit % | Name of client | Advising bank |
555/2015
| 20 000 | 40% | Tolerance Trading | American Bank |
On 10/12/2012, Busy Bank handed the documents to the client who settled the outstanding balance for L/C 555/2-15 on the same day.
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