Can we ( Lender) pass the following entry :-
- ICD Receivables -DR to Corporate Debtor-CR (sanction)
- Corporate Debtor-DR to Bank -CR (disbursement)
- P & L Account -DR to ICD Receivables ( non-recovery).
Our query-whether accounting entry is as per AS and no.3 is okay for taxation purpose ( we want to set off business loss against our business income)
CAclubindia
