pooja (N/A) (25 Points)
21 November 2012Hey please some one help me with this adjustment with creditors..
Creditors include a balance of Rs 4000 to the credit of Mr B in respect of which it has been decided and settled with the party to pay only Rs 1000.
Creditors Value - 80,000
I wanted to know what do I do with this...
V P Narasimhan
(Accounts Manager)
(793 Points)
Replied 21 November 2012
Dear
Normally irrecoverable amount in Debtors will be treated as Bad Debts so also in vice versa amounts which we are not going to pay to the Creditors will be treated as Misc. Income/Other Income.
CA Roshan Jha
(CA (Practice))
(858 Points)
Replied 21 November 2012
The entry will be as follow:
Mr. B A/c Dr. 3,000
To Sundry Crs. written back A/c. 3,000
Sundry crs. written back A/c Dr. 3,000
To Profit & Loss A/c. 3,000
CA Kanchan
(Article Assistant)
(22 Points)
Replied 22 November 2012
CA. Kapil Goel, DISA(ICAI)
(cakapilgoel.wordpress.com)
(2191 Points)
Replied 23 November 2012
agree with CA Kanchan & CA Roshan Jha.....
It will be treated as Indirect Income.
CAclubindia
