V Hajib (Registered Insolvency Professional Registered Independent Director with MCA) (54 Points)
16 February 2023Am amount is shown in last two year balance sheet as outstanding liability towards X firm.
Outstanding AMC charge F/Y 20-21 Rs1000000
How to reverse the entry in current F/Y (23-24)as liability no longer exists.
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 16 February 2023
Dr. Liability
Cr. Bank
If the payment is met.
If the other msme creditor went bankrupt as a result of this outstanding liability
Dr. Liability
Cr. Gain
CA Rashmi Gandhi
(Chartered Accountant)
(86323 Points)
Replied 16 February 2023
V Hajib
(Registered Insolvency Professional Registered Independent Director with MCA)
(54 Points)
Replied 17 February 2023
Can specific journal entry be mentioned.
AMC amount o/s in Balance sheet 31 Mar 21 and 31 Mar 22
what entry to make to now so that it does not reflect on 31 Mar 23 Balance sheet.
The liability never existed and was wrongly shown, debited in P and L accounts and Balance sheets earlier.
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 17 February 2023
Without a compensating entry, the balance sheet doesn't tally. So try and trace the transaction. Then reverse the entries.
Next, if you can't find that transaction
Dr. AMC liability
Cr. Suspense account
Until Then
Payables is usually associated with equity or income statement. So start searching from there.
If you still can't find it
Dr. Suspense
Cr. Foregone payments (or create your own head or use company act schedule)
CAclubindia
