Accounting and special instructions

1. Thank you for your advice of receipt of $ 250 from XYZ Bank on behalf of Mr. Jackson. This item should have been credited to our No.1 account and we will be glad if you will make the necessary transfer.

2. We are glad to say that our records now agree with your statement.

3. With reference of sheet no.7 of your statement of our current account, we have no record of the cheque no.2587 for which you show a debit of $ 103,00.

4. Will you give us details of your credit entries for ₤ 75.53 and ₤ 25.57 on 23 June and 27 June, respectively. Items for which we have not received credit advice from you.

5. Will you please inform us what services are covered by your entry “ Special charges ” dated 1 August.

6. Please credit all sums received under $ 50 to our current account No.2.

7. Please purchase at the best possible rate the following foreign currency and debit to our current account No.1.

Exercise 2. Read and translate the following letters from English into Russian.

(1) Dear Sir,

 

Further to our conversation of yesterday, I request your permission to overdraw my account up to a limit of $ 1,000 between 1 August to 1 January 2016.

As I explained to you yesterday, I have to meet certain capital costs in connection with the expansion of my business. The benefit of this expansion will not be felt till 1 October, when considerable sums of money will be due to our company from home and foreign customers. As security, share certificates worth $500 will be deposited with you. I will also ready to assign to you a life insurance policy for $500.

I am looking forward to hearing from you.

Faithfully yours

_____________

 

(2) Dear Mr.Clark,

 

With reference to your letter of 15 July I am pleased to tell you that we can grant you an overdraft of $1,000 available till 1 January 2016 under condition that there is no change in the position as at present existing.

Will you please therefore let us have your security mentioned in the above mentioned letter.

Interest will be charged at 12% and will be calculated on the daily balances of your count. I believe that you will clear the outstanding balance by 1 January.

I wish you luck with your business and look forward to your early reply.

 

Yours faithfully

 

R.Cliff

_____________

 

(3)  Dear Mr. White,

 

I am sorry to inform you that we will not be able to offer the credit you asked for in your letter of 24 January.

 

You have had an overdraft in the past year which partly influenced our decision, but there is also a credit squeeze at present which has particularly affected loans to the service sector of the economy. I sympathize with you when you say that you have been offered a good opportunity to expand your business if you can secure the £20,000 additional capital. With regard to this, may I suggest that if there are no other possibilities for you to raise the money, perhaps you could approach a Financial Corporation which might be willing to help you.

 

I am sorry that we have to disappoint you in this matter, and hope that we may be of more help in the future.

 

Yours faithfully,

 

Р. Hughes

Manager

 

(4) Dear Mr.Philips

 

On the attached you will find the Bank’s proposed Schedule of Charges which will take effect as from 1 January, and will be reviewed annually.

We very much regret that we are unable to continue offering free banking to our customers. This recent change of policy is due to increasing costs, and we feel that if we are to continue to maintain the professional level of personal service that we have always provided to our regular customers, we must now obtain a contribution to our expenses.

The charges will be debited to your account monthly in arrears.

The minimum balance requirement for those accounts which are interest bearing has been reduced from $ 100,000 to $50,000 or currency equivalent. This reduction in the minimum balance requirement will therefore compensate for some of the charges which will have to be paid by yourselves.

If you have any questions concerning the new charges, would you please telephone either myself or my colleague, James Smith.

Yours sincerely,

 

Bill Collins,

Account Manager

 

(5) Dear Sir,

 

On 1 March you granted me a loan of 2,500 which is due for payment at the end of this month.

I have already taken steps to prepare for this payment but due to a fire at our warehouse 3 weeks ago I have been faced with heavy unexpected payments.

Damage from the fire is expected to be $4,500 and is fully covered by insurance. However, as our claim is to be settled by the end of April, I believe the period of the loan can be extended until then.

 

I am sure you understand that the fire has presented me with serious difficulties and problems and that the payment of the loan before settlement of our claim could be made with the greatest difficulty.

Faithfully yours

Exercise 3. Fill in the gaps with prepositionsand translate the sentences.

1. Please open a current account …us … the name of Jack Harrison & Co. We enclose specimen signatures of our partners, either of whom may sign cheques … our behalf.

2. We are glad to say that our records now agree … your statement.

3. Please buy … the best possible rate the following foreign currency and debit to our current account No.2.

4. Please would you transfer ₤ 1,500 … our current account No.1 … our deposit account No. 2.

5. Will you kindly open the account … my name.

6. Please transfer the sterling equivalent of $ 700 … XYZ Banking Corporation. This amount represents payment … costs incurred by McCartny Corp. … our behalf.

7. Please advise us … the present interest rate… deposit accounts and what balance you require us to keep … our current account to eliminate charges.

8. We have to ask you to stop payment … our cheque no. 247 drawn … 15 October … favor of Orient & Co. … further notice.

9. Would you please arrange … ₤ 367.000 to be transferred … our No.3 account … our landlords … Deutchland Bank … the 1^st of every month.

Exercise 4. Translate the following sentences from Russian into English.

1. Убедительная просьба открыть текущий счет в Вашем банке на имя Джорджа Харрисона. Образец подписи прилагается к письму.

2. Просим снять с нашего текущего счета №1 2400 рублей и перевести их на наш депозитный счет№2.

3. Не могли бы Вы разъяснить кредитную запись 375 долларов, сделанную 24 ноября в Вашем финансовом отчете за четвертый квартал.

4. Просим осуществить покупку по наиболее выгодному курсу следующей валюты, дебетуя наш текущий счет №2.

5. Просим перечислять $500 первого числа каждого месяца компании Sunrise & Co. до дальнейшего нашего уведомления.

6. Просим приостановить платеж $ 3,700 компании Procter and Gamble, поскольку сделка может не состояться.

7. Большое спасибо за уведомление о получении $1,500 из ХУZ банка. Полученная сумма может быть занесена на наш текущий счет № 1.

8. Просим зачислить на наш счет сумму в размере 478.98 долларов США, вызвавшую некоторые расхождения.

9. Уведомляем Вас, что Вы переплатили по счету 678-08. Разница в сумме 545 долларов США будет перечислена и занесена на Ваш текущий счет.

10. Мы вынуждены подчеркнуть, что для поддержания взаимовыгодных деловых отношений необходимо своевременно оплачивать счета.

 

Exercise 5. Translate the following letters from Russian into English.

(1)Уважаемый г-н Уилсон!

В связи с приближением Рождества мы ожидаем значительное повышение покупательского спроса, однако товарный запас на наших складах истощен и нуждается в срочном его пополнении. Мы надеемся, что вы поможете нам в данном вопросе и предоставите мне овердрафт до конца года.

В качестве обеспечения я готов предоставить пожизненный страховой полис и финансовые документы компании, из которых Вы увидите, что я всегда выполнял данные мною обязательства.

Я готов обсудить условия овердрафта при личной беседе с Вами, в удобное для Вас время.

С уважением

___________

(2)Уважаемый г-н Мертон!

Относительно нашей встречи 28 октября рад сообщить, что получено положительное решение на предоставление Вам кредита в размере ₤30.000, о котором Вы просили.

Несмотря на то, что мы говорили с Вами об овердрафте, полагаю, что было бы целесообразнее предоставить Вам кредит в виде ссуды по текущей процентной ставке 12%.

Кредит должен быть погашен к июню 2009г. В качестве обеспечения Вы можете предоставить сертификаты обыкновенных акций компании «Проктер энд Гэмбл Ко.» на сумму ₤20.000 и облигации государственного займа на сумму ₤10.000, которые вы обещали.

Были бы признательны, если бы Вы заполнили прилагаемое соглашение. Деньги будут перечислены на Ваш текущий счет, и Вы можете воспользоваться ими с 15 ноября, если вернете подписанное соглашение к этому сроку.

С нетерпением ждем скорейшего ответа от Вас.

С уважением

___________

(3)Уважаемые господа!

Мы сожалеем, что Вы вынуждены напоминать нам о том, что мы не оплатили счет от 30 ноября.

Мы имели твердое намерение оплатить вышеназванный счет, однако, вследствие неблагоприятной ситуации на рынке наши заказчики не выполнили принятые ими обязательства. Это обстоятельство повлияло самым неблагоприятным образом на наши наличные денежные потоки.

Мы можем заверить Вас, что наша задолженность будет погашена к концу декабря, самый крайний срок. В соответствии с вышесказанным, мы были бы признательны, если бы Вы приняли прилагаемый чек на сумму ₤300 в качестве предварительного платежа. Остаток будет выплачен в вышеуказанные сроки.

Мы приносим извинения за причиненные неудобства и надеемся на Ваше понимание и дальнейшее сотрудничество.

С уважением

(4)Уважаемые господа!

Мы хотели бы узнать, почему не оплачен наш счет № 11321 на сумму ₤ 5 400, копию которого мы прилагаем к письму.

Мы уверены, что с самого начала сотрудничества с Вашей компанией Вы регулярно в срок оплачивали свои счета. Поэтому хотелось бы узнать, не возникли ли какие-либо проблемы, которые мы могли бы Вам помочь разрешить.

С нетерпением ждем Вашего ответа.

С уважением

___________

Text 2

When doing business with companies abroad, it is not always possible to use the terms of payment customary in domestic trade. This is because the seller needs to have more control over payment.

There are different methods of payment accepted in foreign trade:

 

1) In cash

2) In advance

3) By banker’s transfer

4) By International GIRO

5) On open account

6) Payment for collection

7) By Bill of Exchange

8) By Letter of Credit

 

Payment in cash is used in small transactions and usually on receipt of the goods. It is usually called cash on delivery (COD) when payment is made within three – five working days after the delivery and is usually used in home trade.

Payment in advance may be helpful to a buyer in urgent need or where the buyer is unknown to the seller, or in case of single isolated transaction. The actual method of payment in such cases would probably be by banker’s draft or banker’s transfer.

Banker’s transfer is transfer of money from the bank account of a debtor to the bank account of his creditor by order of the debtor. The transfer is made at the current rate of exchange.

International Giro is payment by International Giro, which replaced Money Orders, can be made whether the buyer has an account or not, to the supplier whether he has an account or not. The International Giro form is obtained from any post office, filled in, then handed to the Post Office who forwards the order to the Giro centre which will send the amount to a Post Office in the beneficiary’s country where the supplier will receive a postal cheque which can be cashed or paid into the bank account.

Payment on an open account is usually effected against documents in full or by installments if agreed between the parties. Open account terms would be granted by a seller to a buyer of unquestioned standing or to a customer in whom he has complete confidence. In this case payments can be made monthly or quarterly by bill of exchange or banker’s transfer.

Documentary collection is a means of carrying out transactions when the parties signing an agreement trust each other sufficiently to decline the security offered by the letter of credit. With the help of documentary collection, the seller entrusts his bank with receiving a specified sum of money from the buyer on the transfer of the shipping documents. The payment can be made in cash or by acceptance of the draft.

Documentary collections, known as bills for collection, involves the banks of both the buyer (drawee) and the seller (drawer) actins as collectors of funds. Once the seller shipped the goods and obtained the necessary documents, they can simply pass the documents to the bank together with their instructions for payment (collection order). The seller’s bank (remitting bank) will then instruct the buyer’s bank (collecting/ presenting bank) to deliver the documents in accordance with the seller’s instructions.

There are two types of Documentary collections:

1) Documents against Payment terms (D/P terms) when documents will only released against Buyer’s payment of the bill amount.

2) Documents against Acceptance terms (D/A terms) when documents will be released against buyer’s promise to pay at a later date.

The banks involved in the transaction do not guarantee payment. The sellers should always check on the creditworthiness and reputation of the buyer before agreeing to a Documentary Collection, especially D/A terms.

A Bill of Exchange is used when the seller needs to allow some time for the buyer to arrange payment.

The most common method of arranging payment by Bill of Exchange is to ttachthe

shipping documents (Bill of Lading, the Commercial Invoice, the Certificate of

Insurance) to the Bill of Exchange and present them to the bank for payment. This is

called a Documentary Bill of Exchange.

A sight Bill of Exchange is a bill which must be paid when it is presented to the

company or bank which accepts it.

 

A Bill can be presented for payment 30 d/s (days after sight) that is 30 days after the company or Bank receive the Bill.

 

(А typical example of a Bill of Exchange is given in Appendix 1)

 

Answer the following questions:

 

1. What methods of payment are used in international trade?

2. When is payment in cash usually practiced?

3. What do the abbreviations D/A and D/P stand for?

4.  How does the International Giro system work?

5. What are two types of Documentary Collections?

6. What is a sight draft?

7. Who are a drawer and a drawee?

Vocabulary

 

method of payment способ платежа

payment in cash платеж наличными

cash on delivery (COD) оплата при доставке, оплата наложенным платежом

payment in advance оплата авансом

banker’s draft банковская тратта

banker ’ s transfer банковский перевод

debtor дебитор, должник

creditor кредитор

current rate of exchange текущий обменный курс

international Giro международная система жирорасчетов

beneficiary’s country страна бенефициара

payment on an open account платеж с открытого счета

payment by installments платеж в рассрочку

unquestioned standing безупречная репутация

complete confidence полное доверие

documentary collection документарное инкассо

shipping documents отгрузочные документы

acceptance of the draft акцептование тратты

bill for collection вексель, предъявленный в банк для инкассации(а не для учета)

drawee трассат, плательщик

drawer трассант

collector сборщик

collection order инкассовое поручение, приказ инкассации(письменные инструкции клиента банку по вопросу предъявления и оплаты к-либо коммерческих документов)

remitting bank банк-ремитент(пересылающий банк)

collecting / presenting bank инкассирующий банк (банк, который инкассирует по поручению клиента чеки, которые тот передал ему)

documents against Payment   (D/P) документы против платежа

documents against Acceptance (D/A) документы против акцепта

creditworthiness кредитоспособность

Bill of Exchange переводной вексель

Bill of Lading коносамент

Commercial Invoice коммерческий инвойс (счет-фактура)

Certificate of Insurance страховой сертификат

Documentary Bill of Exchange документарная тратта, документарный переводной вексель

sight Bill of Exchange переводной вексель на предъявителя, оплачиваемый

при предъявлении

days after sight (d / s) через столько-то дней после предъявления (векселя)

Exercise 1. Read and translate the sentences paying attention to the words and phrases in italics.