1. Islamic Letters of Credit
  2. Annexure A - Accounting Entries
  3. Event-Accounting Entries
  4. BISS: Booking of an import Islamic LC
  5. Collateral

15.4.1.2 Collateral

Booking (From Customer Account)

Table 15-5 Accounting Entries

Role Amount Tag Debit / Credit
COLL_CUST_ACC COLL_AMT_OS Dr
LC_COLL_ACC COLL_AMT_OSEQ Cr
COL_DEPOSIT_ACC COLL_AVLAMTEQ Dr
LCCOLL_INT_ACCT COLL_AVLAMT Cr

Table 15-6 Booking (From Customer Account with split details)

Role Amount Tag Debit/Credit
COLL_CUST_ACC COLL_AMT_S01 Dr
COLL_CUST_ACC COLL_AMT_S02 Dr
LC_COLL_ACC COLL_AMTEQ Cr
Booking (From Customer and Obligor Account)

Table 15-7 Accounting Entries

Role Amount Tag Debit/Credit
COL_CUST_ACC COLL_AMT Dr
LCCOLL_INT_ACCT COLL_AMTEQ Cr
COL_OBP_ACC COLL_AMT_OBP Dr
LCCOLL_INT_ACCT COLL_AMTEQ_OBP Cr

Here, the transfer of the collateral from the customer onto the collateral deposit account/GL is assumed to be done before the booking of the Islamic LC.

Parent topic: BISS: Booking of an import Islamic LC