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Accounting entry

07 May 2017

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

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6 Replies

Studentsca (CA Practice ) (3577 Points)
Replied 07 May 2017

Debit Telephone charge payable & Credit cash.

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CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 07 May 2017

Telephone Charge Payable A/c to Cash

Anmol Singla (808 Points)
Replied 07 May 2017

telephone charges A/c. dr
to p and l

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) (86308 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.

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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.