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Bank Guarantee

A bank's commitment to pay a beneficiary on a customer's behalf if the customer fails to meet an obligation — a contingent liability requiring disclosure, not recognition on the balance sheet.

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Related terms

  • Audit Sampling

    Selecting less than 100% of a population to test, and projecting the result to the whole. Distinct from full-population testing, where every transaction is tested and nothing is projected.

  • Audit Trail

    A record of who did what, when, in a system or a file — including what a value was changed from and to. Also the name of a specific Companies Act compliance requirement for accounting software to log edit history.

  • Bank Reconciliation Statement (BRS)

    A reconciliation between the cash book balance and the bank statement balance, explaining every difference (outstanding cheques, unrecorded charges, deposits in transit).

  • Blocked Credit (Section 17(5))

    Categories of input tax credit specifically disallowed under the CGST Act, such as credit on motor vehicles for personal use or on goods lost or stolen, regardless of whether conditions are otherwise met.

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231 terms in total, or go deeper with working procedures and worked examples in the resource library.

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