Help needed on Letter of Credit

1

Hi all, can anybody guide me for the below postings of Letter of Credit of purchaser. I searched the forum already but found nothing related to LC. I am new to manager software, appreciate your simple and effective solution. Thank you a lot.

  1. Opening a letter of credit with 10% margin
  2. On receiving goods
  3. Payment to seller by bank (loan) on receiving advice
  4. On repayment to bank (loan settlement) after 30 to 90 days with interest of 10%
2
  1. The Letter of Credit you wouldn’t take up as a accounting transaction.
  2. On receiving the goods take up a Purchase Invoice,
  3. For the payment to the seller by the bank, you could (a) do nothing or (b) do a Journal transferring the Accounts Payable balance to a loan account.
  4. For the payment to the bank, Spend Money with Account = Accounts Payable for (a) or loan account for (b) and then for both of them add a line with the Account = Interest Paid