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how do you account for a loss if a firm has a old currency (demonitized ) note and they don't exchange in that time no this note doesn't have any value how do we record this ??
Replies (7)
Stale notes charged to profit and loss.
Profit and loss A/c Debit (loss in value of notes)
To Cash A/c (cash is useless so reduce the balance)
To Cash A/c (cash is useless so reduce the balance)
Can we debit it in demonitization loss a/c ??
You can use whatever name you want for the ledger...It will ultimately be debited to Profit and loss account as a loss.
Can we get tax deduction as business expenses
No, because you had to exchange the old currency note within the specified time prescribed by the Government.
Please tell me a how to create project wise expenses in tally
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