Sathyanarayana.B (Senior Executive- Finance) (49 Points)
11 April 2008Hi all, Please help me to sort out this problem. One comany " X " paid advance for expenses(Travel) during the financial year 2006-07 and not settled before year end. Subsequently employee(who took advance) absoconded without settled this amount. Now my question is how to write off this amount in f/y 2007-08. For your information already in 2006-07 i provided expenses(travel expenses) in books. Please let me know can i credit travel expenses in 2007-08 to the tune of that amount?
Thanks to all
Vipin Kumar
(Chartered Accountant)
(31 Points)
Replied 11 April 2008
If u have already expensed out that advances in the F.Y. 2006-07, then where is the question arises for their settlement? Please be more clear & specific
Sathyanarayana.B
(Senior Executive- Finance)
(49 Points)
Replied 11 April 2008
Dear vipin..thanks for ur early reply..in my question i said i provided for expenses in 2006-07(provision) not setllement. Subsequently amount is not recoverable in cash or expenses(bills). Now comapny wants to write off that amount from provisions. i want to know what entry i have to pass? I hope u understood vipin.
CA Anand Bhardwaj
(Employment)
(31 Points)
Replied 11 April 2008
Dear Shri Sathyanarayan Ji,
If you have already created a provision against the said advance, you will need to pass the following entry to write off the advance:-
Provision A/c Dr.
To Advance to Employee A/c
Regards,
Anand Bhardwaj
CAclubindia
