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In this video, the tutorial focuses on the concept of a Letter of Guarantee. It explains that a Letter of Guarantee is a financial document provided by a bank on behalf of a client. Using a real-life example, the video illustrates a scenario where XYZ Company wants to purchase goods worth 1 million from ABC Company. ABC requires XYZ to present a Letter of Guarantee before delivering the goods. XYZ approaches their bank for this guarantee, and the bank evaluates whether XYZ qualifies. Once approved, the bank issues the Letter of Guarantee for the specified amount, which is valid for a predetermined period. The video also covers the relevant journal entries related to this concept.