02 April 2009
Dear Sir, A ltd sold goods to B ltd for 20 lacs.at the time of delivery prices went down as such B LTD refused to accept the goods.A ltd sold it to C LTD 6 lacs.matter is in arbitration for 14 lacs. querry 1) Can A ltd write off 14 lacs as BAD DEBTS? 2) IF ltd wrtes it off as bad debts ,is is not likely that arbitration will reject the claim saying since u have triten off the amount u can not get claim. c.a.paresh zatakia
CAclubindia
