Fy -2015-16 An amount of Rs2500 as Telephone charge payable. fy 2016-17 these amount not settled and shown in accounts as payables. what is the journal entry for writing off the liability payable
6 Replies
Studentsca
(CA Practice )
(3577 Points)
Replied 07 May 2017
Debit Telephone charge payable & Credit cash.
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 07 May 2017
Telephone Charge Payable A/c
to Cash
Anmol Singla
(808 Points)
Replied 07 May 2017
because you tell about writing off. tell me if I am not correct
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 07 May 2017
If payment is not made & u have to only wrie off it from books then correct entty is
Telephone Charge Payable A/c
To P & L
However if amount is already paid but no entry made in books then it is prior period item & entry for that is
Telephone Charge Payable A/c
To Capital A/c
If u have to pay this amt in future then no entry is required. It will shown in next year as payable.
Telephone Charge Payable A/c
To P & L
However if amount is already paid but no entry made in books then it is prior period item & entry for that is
Telephone Charge Payable A/c
To Capital A/c
If u have to pay this amt in future then no entry is required. It will shown in next year as payable.
sanjay balande
(Assistant Manager (Accounts & Indirect Taxes))
(103 Points)
Replied 09 May 2017
Question is how to write off the liability from books of accounts. following is the entry.
Telephone Charges Payable A/c Dr. Rs. 2500/-
To Debit / Credi Balances Written off Rs. 2500/-
The net balance of Debit / Credit Balance Written Off, if it results in Dr Balance, it wll go P& L A/c as expenses and if it results in credit balance, it will be reflected as income under Misc Income & will appear at the credit side of P& L A/C.
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