Ramya Bhat (254 Points)
04 September 2020
Akshay raj Sahani
(15 Points)
Replied 04 September 2020
prasad Nilugal
( GST Practitioner & Accounts )
(14846 Points)
Replied 05 September 2020
@ Ramya Bhat
Normally we write-off after 3 to 4 years but you check out current rule regarding write -off and then you pass entries as follows to write-off creditors
1) your first entry in the Books before write -off
Expense A/c Dr
To Trade Creditors A/c Cr
( Booking entry )
2) When you are going to write-off
Trade Creditors A/c Dr
Trade Creditors written -off A/c Cr
( Creditors write off )
3) Trade creditors write-off Transfer to profit & loss Account as Indirect Income
Trade Creditors written-off A/c Dr
To Profit & Loss A/c Cr
( Transfer to profit & Loss A/c as Income )
Trade creditors write off A/c will be under head Indirect Income ( P&L account )
CAclubindia
