If there stands in books of account a debit balance as well as a credit balance of the same party, is it better to show them netted of or as separate items ? What is the better form of presentation?
4 Replies
Karan Teli
(Life Is just an Illusion...!!)
(4573 Points)
Replied 26 December 2012
Sepreate one..,
It usually depends on the type of transaction and its nature.
CMA RAVI
(ASSISTANT MANGER - FINANCE)
(478 Points)
Replied 26 December 2012
| Originally posted by : RiMa | ||
 |
If there stands in books of account a debit balance as well as a credit balance of the same party, is it better to show them netted of or as separate items ? What is the better form of presentation? |
 |
well, in accounting the word "better" is not defined as such. We should strictly follow the accounting standards.
anonymousCA
(na)
(75 Points)
Replied 27 December 2012
What does the relevant accounting standard say ?
CA Sourabh Goenka
(Chartered Accountant)
(249 Points)
Replied 28 December 2012
hi rima,
if the account are of same nature then 100% it should be net off amount will be shown.. you can't make two ledgers for the same account..
but if the both account are different nature say one is loan account and one fall in debtors account, then you can show different.
But first tell me the nature of both the accounts ??
Recent Topics
- What is tds12
- SECTION 148 PROCEEDING
- GST AUDIT 01 - NOTICE
- Capital gain purchase date
- Transmission of deceased's shares in physical form
- Income tax notice but unable to file updated retur
- Income tax depreciation deductions
- GST Notice (Under Section 73)
- Asset Declaration in ITR2 for flat purchased in jo
- Active pan but invalid
Related Threads
Trending Online Classes
-
PF & ESI Course - Labour Code 2019 Along with Examples and Case Studies
Mr.Balamurugan Ranganathan13 March 2025
CAclubindia
