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Definition of write off and write back ? URGENT

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)

29 September 2010

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C.A. LINESH PATIL (CA) (910 Points)
Replied 29 September 2010

1.A reduction in an individual's or a company's income as the result of an expenses. For example, an unpayable credit sale may be a write-off for the creditor, especially if the debtor declares bankruptcy. The bankruptcy means that the debtor is unable to pay the debt, which results in a loss of income for the creditor.

2.To take an asset entirely off the books because it no longer has any value.If an accrualbasis taxpayer has taken money into income when bills were sent out to customers,but then some of the bills became uncollectible, the taxpayer may write off the uncollectible ones as a deduction against income. Financial institutions are required to write off loans when they become delinquent by a certain amount.

3.write-back

• in Finance the process of restoring to profit a provision for bad or doubtful debts previously made against profits and no longer required.

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Harpreet (* * * * * *) (1670 Points)
Replied 29 September 2010

Correct contribution towards CCI. Great Linesh......

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
Replied 30 September 2010

i want to pass on the discount to the customer through credit notes can it be called write off ?

Niharika.Srivastava (Finance Executive) (15 Points)
Replied 06 June 2011

Hi, Is there any guidelines as to after how much time an account payable can be written off. (Creditors who have not claimed for say 3+ years can they be written off). Is the write off goverened by any policy or principal or is it a company policy. Very urgent Thanks