In international trade, the buyer and the seller do not know each other. In order to receive payment for goods smoothly, both parties are generally willing to choose letter of credit for payment settlement to ensure the security of funds of both parties.

If the Hong Kong company has a letter of credit for payment settlement, it is being doneHong Kong companyAudit shall provide a detailed list of notes receivable and payables and comb notes receivable and payables. Each bank has its own standards for L/C settlement. For example, we have a client whose bank needs to deposit a deposit when the L/C is opened. The bank issues the L/C while the client is also receiving the L/C. At this time, if the enterprise does not record the payment and expenditure of the letter of credit in detail, it only confirms the payment and payment according to the bank deduction and collection, which will cause that the actual payment has been received and paid. As the bank makes corresponding deductions when the letter of credit is entered into the account, the current accounts do not match. It is suggested that the customer record the flow of the letter of credit through the register ledger. Sorting out according to the bank letter of credit settlement list: the amount of the letter of credit issued corresponds to the trade purchase, and the sales and letter of credit margin corresponding to the amount of the letter of credit received is deducted, and the balance is deposited into the bank account or deducted from the account.

In this way of bank account entry, the customer must make a good record of the detailed payment and expenditure of the letter of credit, otherwise it is impossible to sort out the payment and settlement after a long time.

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