account

This query is : Resolved 

Avatar

Querist : Anonymous

Profile Image
Querist : Anonymous (Querist)
25 May 2010 In customer account credit amount is showing for a longer period and that customer has not showing any claim for. can any one guide after what period we can transfer that amount to income a/c?


25 May 2010 it is 8 years though i am not very sure

26 May 2010 As per the section 2(j) and 3 of law of limitation, a person has to claim the dues within 3 years from the close of the financial year in which the last transaction is entered in the account after which the debtor is not liable to pay. Hence a company can write back such balances after 3 years. However, the company can adopt its own policy for the same which should satisy the legal requirements also.




You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries