Final accs adjustment

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Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2011 a sum of 10000 due rom rao,which was also included in creditors for 12000....ans)creditors ac dr. to debtors ac10000 ...however i could not understand the logic... please elaborate

CA. Nitin Agrawal

CA. Nitin Agrawal (Expert)
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01 October 2011 I think you case pertain to book adjustment. One of the creditor is adjusted with one of the Debtors account.

This is nothing but book adjustment and you must take account confirmation and such adjustment certificate from both the parties.

Querist : Anonymous

Querist : Anonymous (Querist)

01 October 2011 but the question does not specify that mr.rao is the creditor and it could also be that debtors of 10000 wrongly recorded as creditors ?

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CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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03 October 2011 hey brother just read the text you typed carefully,

a sum of 10000 due rom rao

the above statement itself indicates that rao is having Rs 10,000 due to pay to our company it is cleare that he is Debtor

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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03 October 2011 Now look at the second part of ur text

"which was also included in creditors for 12000"

the above statement make it clear that he is also included in the list of creditor

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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03 October 2011 well, i understand your state of mind

it happens at time that a prty is having both kind of transactions with the same party,
i.e. supplying some goods to the same client and also receiving the different kind of goods.

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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03 October 2011 the case can also be like that
when the advance was given to the supplier, it was debited in Sundry Debtor category,

when the bill is finally received form the party, he will be credited in Sundry creditors,

now the adjustment of advance is made

Querist : Anonymous

Querist : Anonymous (Querist)

04 October 2011 thank u sir..i got your point ..as the question does not specify "WRONGLY" i cannot assume that debtors must have wrongly been recorded as creditors

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CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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05 October 2011 well brother amny of the author uses the terminology of "DUE TO" and DUE FROM"
please try to understand teh same carefully as they also indicate the outstanding amount namely as debtor and creditor