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Accounting treatment

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Querist : Anonymous

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Querist : Anonymous (Querist)
12 June 2014 if we have to pay to supplier then they are called creditor and recorded on the liability side of b/s. how to treat if now no longer going to pay to them.i.e(such as bad debt for debtors then what for creditor)



please reply soon.....
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Sandeep Dharar

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Sandeep Dharar (Expert)
12 June 2014 First say that y u do not pay to them?
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Querist : Anonymous

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Querist : Anonymous (Querist)
12 June 2014 because sir thesupplier's firm has been closed.so we are not paying to them
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Guest

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Guest (Expert)
12 June 2014 then it will be your part of income


as bad debt are expensed and this is a reverse type case

this will turn out to be your income
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Sandeep Dharar

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Sandeep Dharar (Expert)
12 June 2014 If the Creditors r not in existence then the amount due to them will b treated as us Abnormal Income or Indirect Income.
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Vishnu Saboo

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Vishnu Saboo (Expert)
16 June 2014 you may credit them in "Sundry balances written off" account.

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