Accounting entries

Dear

Normally irrecoverable amount in Debtors will be treated as Bad Debts so also in vice versa amounts which we are not going to pay to the Creditors will be treated as Misc. Income/Other Income.

The entry will be as follow:

Mr. B A/c                      Dr. 3,000

       To Sundry Crs. written back A/c.  3,000

Sundry crs. written back A/c         Dr. 3,000

                          To Profit & Loss A/c.              3,000

Thank you Asif

agree with CA Kanchan & CA Roshan Jha.....

It will be treated as Indirect Income.