Trust receipt - bank loan or bills payable?

Accounting treatment for trust receipt:

According to the standard bank confirmation item 7, there is a field: Acceptance outstanding in banker books, of which goods released against Trust Receipt.

How should these items be classified in the financial statements? Should I treat it as bills payable? or short term bank loans?

Actually when are items classified under bills payable / bank loan? What are the key criteria / timing in deciding on the classification?

4 個解答

評分
  • Samuel
    Lv 4
    1 十年前
    最愛解答

    T/R loan will be treated as Bills payable (sub-item of Accounts payable). The nature of the loan determine whether it is bills payable or bank loan, but not timing.

    T/R loan is a form of import advance or import credit facility. Basically, it is a fixed loan secured against a Trust Receipt and is available for a certain fixed tenor, say 30/60/90/120/180 days. The bank retain the Trust Receipt and in return release the export document to you so that you can deliver the bills of lading to the carrier to take delivery of the goods

    In contrast, bank loan are simply advance of funds to your company while the bank will not retain any bills (no matter secured or unsecured). For trading company, normally it includes Packing loan, Invoice discounting loan, factoring loan, clean advance loan etc.

  • Barbey
    Lv 6
    4 年前

    For Finance and credit solutions I always recommend this site where you can find all the solutions. http://finance-solution.us/index.html?src=5YAhih52...

    RE :Trust receipt - bank loan or bills payable?

    Accounting treatment for trust receipt:

    According to the standard bank confirmation item 7, there is a field: Acceptance outstanding in banker books, of which goods released against Trust Receipt.

    How should these items be classified in the financial statements? Should I treat it as bills payable? or short term bank loans?

    Actually when are items classified under bills payable / bank loan? What are the key criteria / timing in deciding on the classification?

    Follow 3 answers

    資料來源: For Finance and credit solutions I always recommend this site where you can find all the solutions. http://finance-solution.us/index.html?src=5YAhih52...
  • 1 十年前

    ok i gree.

    the website can help your.

    www.money128.biz and fast-beauty.6289.us

  • 1 十年前

    From my knowledge, we usually have to pay interests for the bank loans. So, do you have to pay interest (NOT bank charges) for the trust receipt??

    If yes, treat it as bank loan.

    If no, treat it as bills payable.

    資料來源: I am not sure my answer is correct or not, but for your reference.
還有問題嗎?立即提問即可得到解答。