03 January 2012
My Company was paid sum of27794 to another employee as advanced on 25.03.10 but he left on 01.4.10 . he said i will not pay that amount Can i treat this amount as bad debt
03 January 2012
Bad debts relates to only that unrecoverble amount which pertains to trade debtors and also that amount which we have considered as our income. As advance given to employee does not effect the profitability you can't treat that as bad debts. You can charge it through capital a/c but not through p&l a/c.
03 January 2012
Bad debts relates to only that unrecoverble amount which pertains to trade debtors and also that amount which we have considered as our income. As advance given to employee does not effect the profitability you can't treat that as bad debts. You can charge it through capital a/c but not through p&l a/c.
CAclubindia
