Contents

I. Instruments

A. A brief introduction

1. What s instruments? ① a broad sense: a commercial document of title;

② a narrow sense: a specific, negotiable security for the purpose of paying money signed by the drawer on it which is unconditionally agreed to pay a sum in certain by the himself or by another. E.g. if agreed to pay by the maker, it is promissory note; if agreed to pay by another, it may be a draft or a cheque.
Contents

I. Instruments

A. A brief introduction

1. What s instruments? ① a broad sense: a commercial document of title;

② a narrow sense: a specific, negotiable security for the purpose of paying money signed by the drawer on it which is unconditionally agreed to pay a sum in certain by the himself or by another. E.g. if agreed to pay by the maker, it is promissory note; if agreed to pay by another, it may be a draft or a cheque.
UK Customer: outward remittance in GBP--- how to record ?

C ustomer AC Vostro AC

Dr. GBP xxxx │ │Cr. GBP xxxx

UK Customer: outward remittance in forCurrency--- how to record?

C ustomer AC Nostro AC

Dr. GBP xxxx │ │Cr. ForCurrency xxxx
III. Means of payment P9--15

1. Cash in advance P9--10

2. Open account P10

3. Collection P10--12

4. Documentary credit P12--15

IV. Collection P15--30

1. Outward Documentary Collection P15--25

2. Inward Documentary Collection P25--30

V. Documentary letter of credit P30--58

(I). Concepts of the Documentary Credit P30--35

1. An overview P30

2. Stages of a Documentary Credit P30--31

3. Review of the Documentary Credit application & Security Agreement by the Issuing Bank P31--33

4. Utilization of the Documentary Credit P33

5. Common Sense Rules for the Beneficiary P33--34

6. Honoring the Obligation under the Documentary Credit P34--35