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How these expenses could be acccounted in the company's books of accounts

This query is : Resolved 

29 June 2024 Dear Experts,
1 A company is remitting the settlement amount to the defendant as directed by Court.
2 How these expenses could be acccounted in the company's books of accounts?

29 June 2024 In case of employees account it under remuneration head.

01 July 2024 Thank you Sir,

this is the situation that one of customer has lodged the complaint with consumer forum.

In this situation how it can be accounted?

Please clarify


01 July 2024 Account it as compensation to the customer.
It will be allowed as business expenditure.



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