Bad debts

This query is : Open

Anwar Shaikh (Querist)
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26 April 2013 Dear All,

If company gives Deposit to Land Lord, Or company gives advance to creditors but does not recover it.

(Entry : Landlord A/c------Dr
To Bank

Can company claim this as Bad Debts ?

or It is covered under any other head ?

(Because I think for bad debts, debts should be out of credit to P&L)

CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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26 April 2013 Yes, For Claiming Baddebts Earlier You should Credit it to P&L Account.
(Except to Finance Company)For Those Principle Amt allowd as Bad debts.

Anwar Shaikh

Anwar Shaikh (Querist)
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17 June 2013 Dear All,

If company gives Deposit to Land Lord, Or company gives advance to creditors but does not recover it.

(Entry : Landlord A/c------Dr
To Bank

Can company claim this as Bad Debts ?

or It is covered under any other head ?

(Because I think for bad debts, debts should be out of credit to P&L)

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