sunny (Audit Assistant) (55 Points)
18 July 2009supoose in creditor a/c cr. stands in our books are Rs.1,00,000. n When we had taken creditor confirmation he stated that he has to take only 75000.we have setteled his account. now my question isin which A/c this 25000 will go? how to treat it? can v take it to short & excess a/c? what r d maximum amt for short n excess a/c? plz post entry here...thanx in advance m waiting 4 ur replies..........
CA Hardik
(Profession)
(92 Points)
Replied 25 July 2009
Friend
This 25000 can be treated as discount received
There is no limit for Excess / Short A/c as per income tax Act 1961
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 25 July 2009
hii....
m l'le bit not sure abt charging such huge amount under DISCOUNT RECIEVED.....
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 25 July 2009
in short & excess a/c.
Ratan Deep Saxena
(Asstt Manager (Accounts & Finance))
(2998 Points)
Replied 25 July 2009
in short & excess a/c.
Anil Kumar
(Sr. Accountant )
(33 Points)
Replied 26 July 2009
I agreed , It must be shown as discount received. Logic behing this, it will be treated as income and will be credited in Profit & Loss A/c. The effect will increase in Net Profit. - Anil Kumar, Triburg
MAHESH
(ACCOUNTANT)
(823 Points)
Replied 12 August 2009
It must be shown as discount received But You must provide Debit Note for discount received. Becoz in future Income Tax or Excise officer asked about this matter. Ok.
CA munjal
(articled clerk)
(100 Points)
Replied 12 August 2009
It depends on the facts and circumstances of the case. If it is found that the excess credit was made due to error and omission then it should be credited to prior period income. If it is not traceable then it may be credited to discount a\c.
CA munjal
(articled clerk)
(100 Points)
Replied 12 August 2009
It depends on the facts and circumstances of the case. If it is found that the excess credit was made due to error and omission then it should be credited to prior period income. If it is not traceable then it may be credited to discount a\c.
EASWARA SRINIVAS ATTULURI
(MANAGER ACCOUNTS)
(43 Points)
Replied 03 September 2009
The Balance amount Rs.25000/- has to be accounted in OTHER INCOME
CA Hemant Kumar
(CA, LLB (p), B.Com)
(204 Points)
Replied 03 September 2009
i agree with Mr. Anil
the said amount may be treated as discount recieved as there is only one way that it should be credited to P/L Account.
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