WHTHER ACCOUNT OF ALL DEBTORES ARE NECESSARY?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 November 2010 WE ARE WHOLSELLERS THRERE ARE ABOYT 1000 CUSTOMERES .WE GENERALLY MAKE SALES ON CASH BASIS BUT SOME CUSTOMER DID NOT GIVE CASH IN THIS CASH WE KEEP A GENERAL DEBTORES ACCOUNT IN WHICH TOTAL OUSTANDING IS SHOWN AND WHENEVER WE RECIVE MONEY WE REDUCE FROM GENERAL DEBTORES ACCOUNT ONLY AT ATH END OF YEAR WE PREPARE OUSATNDING LIST IS THIS METHOD IS OK AS PER INCOME TAX AND M VAT ?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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08 November 2010 If you donot have any problem in controlling it mannualy, its all right. But my suggestion it maintain it debtor code wise. your provide customer code to all the debtors and make the entries in related debtor's only.

Rajan Kapoor

Rajan Kapoor (Expert)
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09 November 2010 Your method is OK, however for better control you are advised to create individual debtor account and if some one ask for statement you can easily provide it.

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Querist : Anonymous

Querist : Anonymous (Querist)

10 November 2010 I WANT TO KNOW THAT WHETHER INCOME TAX DEPARTMENT AND M VAT (SALES TAX) DEPARTMENT CAN SAY YOUR ACCOUNTING SYSTEM IS NOT PERFECT SO WE REJECT YOUR BOOKS OF ACCOUNT AND/OR THEY ASK ME TO PREPARE INDIVIDUAL DEBTORES ACOUNT AND IF THEY ASK AND I DONT HAVE DETAILS THEN WHAT

Abhishek

Abhishek (Expert)
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15 March 2011 The problem will come in the year in which there are any bad debts and you want to write them off - As you will not have individual debtors brk up.. it will be hard to claim tht as a deduction... Else no problem other than the control issues highlighted by other members