ACCOUNTING ENTERIES

This query is : Resolved

Suresh S. Tejwani (Querist)
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27 February 2023 MR. A IS PREPARING BOOKS OF ACCOUNTS
MR. A HAS TO RECEIVE 1000 FROM MR. B
MR. B HAS TO RECEIVE 1000 FROM MR. C

CAN MR. A DIRECTLY MAKE JOURNAL FOR TO MAKE RECEIVABLE FROM MR. C ?
WITHOUT BANK OR CASH TRANSCTION

IS THIS CORRECT ACCORDING TO INCOME TAX OR ANY OTHER LAW ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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28 February 2023 Yes, with the consent of B and C , A can make the entry.
No problem with income tax or any other law.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)
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01 March 2023 FOR MORE BETTER CLEARITY
SUPPOSE MR. A HAS TAKEN UNSECUED LOAN FROM MR. B FROM BANK NOW CAN MR. A MAKE JOUNAL ENTRY TO PAY UNSECURED LOAN AGAINST FROM MR. B TO MR. C ? OR VICE-E-VERSA ?

IF YES , WHAT ABOUT CLAUSE 31a AND 31c OF FORM 3CD OF INCOME TAX ACT WHICH SHOWS OUTSTANDING ?

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