Administrative accounts and records related to it;
Mainly, administrative accounts are used when we want to give guarantee documents to our accounts or to receive from them. We give a guarantee or get a guarantee in order to guarantee the correct execution of a task and commitment in some way. Administrative accounts have the role of collateral and do not have a financial burden and are not reflected in the balance sheet, but only under the balance sheet or in the accompanying explanatory notes. Financial statements will be disclosed.
Types of guarantees:
1. Check
2. Promissory note
3. Bank guarantee
4. Property deed
5. Cash
The types of guarantees that are exchanged between the account parties are as described above and are stated based on the amount of use. Mostly, checks are used more than other items for guarantee. For large and government transactions, only a bank guarantee is used or an amount from a commitment or contract is kept as a guarantee.
Administrative accounts and related accounting records
If your company receives legal documents, the following accounting records will be issued:
Administrative accounts in favor of the debtor company
Party of administrative accounts creditor
If our company pays documents as a guarantee, in this case the following accounting record will be issued:
Administrative accounts are the responsibility of the debtor company
Party of administrative accounts Creditor
Mehdi Koh Soltani (financial services, accounting, financial and tax consultant):
Link to the audit accounting clinic
https://t.me/joinchat/BnzBsTuioTshiXBwf9bBPQ