suppose i have one client, and i use bill discounting facility for his bills, then will i have any debtors in my bs?? if so can any one tell how??
You will not have that Debtor in your B/S. Its not the case when you get the bills discounted. It will be from the moment you converted that debtors into B/R.
This B/R also when it gets discounted , it will not appear in B/S. This will continue till its gets dishonoured. When that B/R is dishonoured, that debtor will again come into your books....
Hope you have understood.
naveen
(Analyst)
(36 Points)
Replied 29 April 2010
agreed faiz, but this theoretical. In practice, things are diff. I have a client who has a single customer and gets his bills discounted. Still he has debtors in his BS. My guess is that he doesnot discount all the bills. Just wanna know are there any other situations in which BS will carry debtors.
naveen
(Analyst)
(36 Points)
Replied 29 April 2010
hope you have read my line that there can be a situation that he doesn't want to get his bill discounted. There will be such situations when his discounting limit has been reached, or value of such bill is insignificant that he would not discount them.
Kalpesh Chauhan,
(Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))
(8310 Points)
Replied 30 April 2010
@ Kalpesh Sir,
In some B/R it can be contingent asset, but all B/R cant be contingent asset. Moreover contingent asset do not appear inside the balance sheet, they appear as a footnote to the balance sheet. So treating it as contingent will not serve you any purpose because it will not affect the books in present scenario. They will have its affect only when that contingency materialises.
So in my opinion you cant treat all debtors as contingent. If u treat some as contingent , still it will not affect the balance sheet in present.
gopalkrishnan
(Accountant)
(21 Points)
Replied 29 May 2013
We have receved supply order againt 150 days LC from our debtors which consists 120 days interest to receivers A/c. & 30 Days Interest suppliers. How should I do the Entries.
I am waiting ur reply.
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