All the liablities are unclaimed. Most of the employees have left the org without Full & final Settlement.
Please guide whether we can write back the amount in Profit & loss account or we need to transfer the amount in any government fund under any law in force in India(with references ) after a a certain period of time (like it is done in investors protection fund in case of unpaid dividends after 7 years) .
Also we have a debit balances of employees like tour advance recovery, other loan & advances. can we adjust the amount with the liablities as above.???
23 July 2012
The balances have to be written back after reasonable period of time. ( The reasonableness will differ from case to case) Do not forget to pass the resolution to that effect provided you are a COMPANY.