Pratik Surve (Assistant Professor ) (571 Points)
12 November 2018WE HAD PAID SOME AMOUNT AS ADVANCE TO OUR SUPPLIERS BUT WE HAVE NOT REC'D INVOICE AND MATERIAL TILL DATE. SO NOW WE WANT TO W/OFF THIS DEBIT BALANACE OF CREDITORS. SO PLZ TELL ME HOW CAN WE ADJUST THIS CREDITORS AND WHAT WILL BE ACCOUNTING ENTRY FOR THE SAME TO W/OFF.
THANKS IN ADVANCE
prasad Nilugal
( GST Practitioner & Accounts )
(14846 Points)
Replied 12 November 2018
You can writeoff by passing following J.E .
Sundry Creditors A/c Dr
Sundry Creditors writen off A/c Cr
( Being Creditors W/off for long out standing )
- Creat Sundery Creditors W/off A/c under Indirect Income under Profit & Loss A/C
prasad Nilugal
( GST Practitioner & Accounts )
(14846 Points)
Replied 12 November 2018
Sorry some correction is requried in above entry , please do consider above entry
prasad Nilugal
( GST Practitioner & Accounts )
(14846 Points)
Replied 12 November 2018
please do not consider above entry
Pratik Surve
(Assistant Professor )
(571 Points)
Replied 12 November 2018
BUT CREDITORS HAS ALREADY SHOWING DEBIT BAL. SO HOW CAN WE DEBIT THIS AGAIN
prasad Nilugal
( GST Practitioner & Accounts )
(14846 Points)
Replied 12 November 2018
yes you are correct , so I told you not consider that entry , That entry will be when you write off creditors .
Pratik Surve
(Assistant Professor )
(571 Points)
Replied 12 November 2018
OK THANKS
SO WHAT WILL BE CORRECT ENTRY???
prasad Nilugal
( GST Practitioner & Accounts )
(14846 Points)
Replied 12 November 2018
Have to taken Advance to Creditors under Loans and Advance in Asset side ?.
Pratik Surve
(Assistant Professor )
(571 Points)
Replied 12 November 2018
SO BASICALLY U R SAYING CREATE ADV TO CR LEDGER
BUT THEN ENTRY WILL BE...
ADV TO SUPP A/C DR
TO BANK A/C
???
prasad Nilugal
( GST Practitioner & Accounts )
(14846 Points)
Replied 12 November 2018
you are correct you 1st entry will be
1) Advance to Creditors A/c Dr
To Bank Cr
( Being advance paid to creditors ) . Advance to creditors a/c will be under Loans & Advance in Asset side . No GST on advacne payment for goods .
Now you have not received the goods nither the invoice for long time
so you can W/off by passing following entry
2) Goods lost A/c Dr
To Advance to creditors A/c Cr
( Being goods not received , Ad W/off )
Goods lost will be under profit & loss direct exp . you may take other opnion also .
prasad Nilugal
( GST Practitioner & Accounts )
(14846 Points)
Replied 12 November 2018
You may also creat Goods not received A/c insted of Goods lost . under profit & loss A/c direct Exp .
Pratik Surve
(Assistant Professor )
(571 Points)
Replied 12 November 2018
OK THANKS MR PRASAD..
SO IT WILL BE CONSIDERED AS LOSS ULTIMATELY
prasad Nilugal
( GST Practitioner & Accounts )
(14846 Points)
Replied 12 November 2018
yes its loss that is why we debiting to profit& loss A/c .
Pratik Surve
(Assistant Professor )
(571 Points)
Replied 12 November 2018
OK I GOT IT
REALLY THANKS..
CAclubindia
