19 June 2008
A company billed a customer with higher amount.Income a/c as well as Debtor(Customer)A/c were posted with higher amount.2 years later the company realises the mistake.What should be the accounting treatment now?
23 June 2008
Instead of P&L, which expense account i should Debit? Whether Bad Debts is justifiable from Income Tax point of view, bcoz just bcoz i booked him as my debtor it was not my debtor in actual. Can it be booked as prior period item since it is a rectification of mistake of earlier year..
24 June 2008
Dear Sir, You may refer AS-4. I.T. Dpt. will disallow if you show as Prior Period Items. SO the best option is to show as Sales return (It may create problem as its after 2 year). But there is no better option.
26 June 2008
Can u please elaborate why it cannot be booked as Prior period expense.Since it was advertisement income it cannot be booked as sales return. Suggest me an alternative.Please..........