guarantee

[Former Member]

hi,

need to check with you all this.

1) guarantee given by customer - this is being asset or liabilities. to me it seems like a liabilities as it is not a receivable yet but why the account assigned is asset account when do f-38.

2) guarantee given to vendor - this is being asset or liabilities. to me it seems like an asset as it is not a payable yet. but it get posted to liabilities account during f-55.

thanks

[Former Member · Accepted solution]

Hi

Guarantee given by customer is an asset as you can encash it if reqd.

Guarantee given to vendor is of course liablity as vendor can encash it if needed and banker will hit your account

Thanks

Sanjay

[Former Member]

Hi

I agree with Sanjay answer.

Regards

Odaiah Pelley