25 January 2012
What should be the accounting entry for short payment received from sundry creditor, which he is not likely to pay at a latter stage as well
If you talking about short receipt from a debtor, debit bad debts account and credit the debtor account for the amount short received.
If you talking about short payment to creditor and the creditor is not claiming the balance amount, the same may be credited to "Unclaimed Liabilities Written back" or any other suitable head of acccount.
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