Outstanding creditors

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CA Sanjana arora (Querist)
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20 June 2013 Some creditors are outstanding in our books of accounts since very long time and now i came to know that these companies are shut down...so pls advise me what should be the accounting treatment of these creditor how can i adjust them.

Rupesh Jain

Rupesh Jain (Expert)
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20 June 2013 YES YOU HAVE TO WRITE OFF
BUT PLS CONFIRM BL FROM CR. IF POSSIBLE

CA Sanjana arora

CA Sanjana arora (Querist)
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20 June 2013 Pls tell me the treatment of writing-off these creditors...and is there any tax implications

CA Sanjana arora

CA Sanjana arora (Querist)
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21 June 2013 how to write off creditors

Rupesh Jain

Rupesh Jain (Expert)
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21 June 2013 dr the creditors a/c
and credit the ledger Uncliamed amount Writenoff

Rupesh Jain

Rupesh Jain (Expert)
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21 June 2013 it include in your income

in some decisions it sidecided that if the creditors related to capital assets then part of your capital receipts and not taxable.
but creditors related to revenue items is taxable .

CA Sanjana arora

CA Sanjana arora (Querist)
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22 June 2013 ok..if i write off the revenue creditors then it will be comes in the credit side as unclaimed amount write-off

Rupesh Jain

Rupesh Jain (Expert)
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22 June 2013 yes and your income will increse with w/o creditors amount '
and you have to pay tax. on it.

CA Sanjana arora

CA Sanjana arora (Querist)
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22 June 2013 hmmm...thanks

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