Q1- Sushil kumar has compounded with his creditors. I have accepted acomposition of 62p in the rupee on a debt of Rs.4800 due from him.
Q2- sunil kumar compounded with his debtors. Accepted a composition of 35p in the rupee out of a debt of Rs.1000.
8 Replies
prasad Nilugal
( GST Practitioner & Accounts )
(14805 Points)
Replied 02 September 2019
1) Sundry Creditors A/c Dr 4800/-
To Bank A/c Cr 2976/-
To Sundry creditors written off A/c Cr 1824/-
( Payment to sundry creditors 0.62 out of 1 rupee , balance written off )
2) Bank A/c Dr 350
Bad debts A/c Dr 750
To sundry debtors A/c Cr 1000
( Payment received 0.35 out of rupee form debtors balance bad debts )
At the end of the year bad debts & creditors written off will be transfer to profit & loss a/c
sabyasachi mukherjee
(27579 Points)
Replied 16 September 2019
There can be no account under the
Nomenclature
sundry creditors written off....
Nomenclature
sundry creditors written off....
prasad Nilugal
( GST Practitioner & Accounts )
(14805 Points)
Replied 20 September 2019
Mr Mukherjee will you please elaborate ?. Nomenclature ?.
sabyasachi mukherjee
(27579 Points)
Replied 20 September 2019
Sundry creditors are written off..
you can initially dr. bad debt account in case of debtors.
first provide for the debtors.
you can initially dr. bad debt account in case of debtors.
first provide for the debtors.
prasad Nilugal
( GST Practitioner & Accounts )
(14805 Points)
Replied 25 September 2019
@ Dear Mr Mukherjee Why should I call you , If you think any thing wrong then please explain bellow details . bad debts and sundry creditors two different cases .
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 16 November 2020
I’m not sure about written off, to me, compounding is interest payable and
creditors dr. 4800
interest dr. 2976
To Bank 4800+2976
Similarly,
bank dr. 1350
To interest received 350
To receivables / debtors 1000
Assuming that it’s full and final settlement.
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