RishebhKumar (Studying) (128 Points)
08 June 2012What is the meaning of WRITTING OFF in Accounting ? Plz explain with example if possible... I have heard it lots of time but just learned it like a parrot but did not understand its true meaning now it is giving so much problem everywhere in accounting. Plz help
Thanks in Advance
Devendra
(Chartered Accountant)
(4775 Points)
Replied 08 June 2012
Writing off means debiting the expense to the Profit and Loss Account.
For Eg : Bad Debts are written off which means when no money is recoverable from the Customer, his (Customer) account is credited and Bad Debts is debited. ie the debtor has turned bad or nothing is recoverable from him.
Regards,
Devendra Kulkarni
Vedang
(student)
(26 Points)
Replied 16 June 2012
Expenses like depreciation and loss on redemtion is also wrten off....
srinivas reddy
(article student)
(328 Points)
Replied 16 June 2012
CAclubindia
