Debtors write off

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Querist : Anonymous

Querist : Anonymous (Querist)

15 April 2013 Are Indian Accounting Standards applicable for sole proprietory & patnership firms?

What are rules for writng off debtors? Is it compalsory to write of debtors which are 1 year old?

Pankaj Gupta

Pankaj Gupta (Expert)
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15 April 2013 Indian AS are not applicable on partnership firms and proprietorship business.
Secondly, there is no rule for writing off debtors. Just an accounting entry will work
Thirdly, there is compulsion on writing off of debtors. As soon as a person realizes that there is an uncertinity in receipt of payment, he can create provision for bad debts with appropriate amount.