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Difference between write off and write back

Satyendra sahu (service) (216 Points)

05 July 2008

Hi every one,

Please help me in knowing what is the differnce between amount written off and written back.

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16 Replies

(Guest)

according to me writing off means to close or reduce the account of fictious assets and writing back means taking into account again the asset or liabilty earlier written off

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ashish harkare (Service) (33 Points)
Replied 06 July 2008

written off is reducing debit balances which are no longer and show as an expenses. however written back is reducing credit balances and claiming as income.

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(Guest)

Dear Frind,

Write off means you can say it is Profit & Write back means Loss.

(Guest)

DIFFERENCE BETWEEN WRITTEN OFF & WRITTEN BACK:

WRITTEN BACK:- IT MEANS TO TAKE REVERSE THE EXCESS PROVISION MADE.

FOR EXAMPLE IF YOU MAKE A PROVISION FOR SUNDRY CREDITORS AND AFTER MAKE ALL ACCOUNTING ENTRIES THE PROVISION FOR CREDITOR A/C REMAINING BALANCE THEN YOU CAN MAKE A REVERSE ENTRY OF THIS BALANCE AMOUNT AND IT MAY IMPACT REVERSE OF THE PREVIOUS ENTRY IN P/L A/C.

WRITTEN OFF: IT MEANS THAT YOU HAVE A BALANCE IN YOUR BOOKS AND IT MAY NOT POSSIBLE TO REALIZED IN FUTURE.

TO CLEAR THE BALANCE IN THE BOOKS OF ACCOUNT THESE TYPE OF AMOUNT CAN BE WRITE OFF.

I THINK NOW IT IS CLEAR THAT ONE IS USED FOR ADJUST THE EXCESS PROVISION AND OTHER IS USED FOR UNREALISED AMOUNT.

REGARDS

RAJESH

ALOK GULATI (student) (80 Points)
Replied 07 July 2008

Provisions & liabilities are "written back" whereas "write off" is assoiciated with balances i.e. assets which are no longer realisable.

This is what was told to me by my senior once, I hope it is clear.

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Satyendra sahu (service) (216 Points)
Replied 08 July 2008

Hi alok,

Thanks a lot for your reply.

preneeja (student) (21 Points)
Replied 10 October 2010

okey

what is provision for creditors???

wat z its nature??

y z it created??

wat z its treatment??

whr does it appear??

Muthukumar (Chartered Accountant) (78 Points)
Replied 17 February 2011

What is the journal Entry to be passed for Write back of creditors(with say Rs. 10,000 Cr.) no longer payabe in books????

AVIJIT (CA FINALIST) (370 Points)
Replied 18 February 2011

As far i think write back of creditors is to raise the balance of creditors. So if it is that then entry will be:

P/L Dr

To Creditors

as to reduce the creditors which are no longer payable we must have passed:

Creditors Dr

To P/L

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Deeejey (May'11: The Final Assault in making of CA) (201 Points)
Replied 20 February 2011

write off every one knows.

Write back: e.g whre write back is from Revaluation reserve. J/E will be: where we have Reval reserve accoutn and therei s write back

Revaluaiton account Dr.

To P&L Account

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V P Narasimhan (Accounts Manager) (791 Points)
Replied 15 March 2011

If an amount not collectable we can call it as "write off" thro' bad debts. But in the subsquent year if the same amount received we can call back as "write back' & treat it as misc income.

Dipak Jagade (CA Student) (29 Points)
Replied 16 August 2011

hi,

Professional fees ,bill rececived for Rs.12000/- for quarterly, but booked only Rs.6000/- and TDS deducted on Rs.6000/- from 2006 to 2010 and also TDS deducted when advance paid. now in 2010-11-

1)CAN BOOKED DIFFERENCE RS. 6000/- FROM 2006- TO 2010

2) WHAT TDS IMPACT FOR INTEREST & RETURN ?

3) ALLOWED / NOT THIS EXPENSES FOR 2010-11 & WHAT AMOUNT ?

4) OTHER IMPACT IF ANY

Ayisha Anis (Student) (696 Points)
Replied 01 September 2020

An amount that cannot be realised is written off. It is in relation to losses on an asset. A write off may be done by the direct write off method or the allowance method.

In writing back, the value of an asset that has been previously written down (reduced), is raised. There may be tax implications for this write back.

shahyar husain (1240 Points)
Replied 31 December 2020

An increase in the value of an asset after a previously made write down, which is a record of a decrease in value. A write-back may have capital gains tax implications, as higher value generally translates to higher taxes