If there stands in books of account a debit balance as well as a credit balance of the same party, is it better to show them netted of or as separate items ? What is the better form of presentation?
Karan Teli
(Life Is just an Illusion...!!)
(4573 Points)
Replied 26 December 2012
Sepreate one..,
It usually depends on the type of transaction and its nature.
CMA RAVI
(ASSISTANT MANGER - FINANCE)
(478 Points)
Replied 26 December 2012
| Originally posted by : RiMa | ||
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If there stands in books of account a debit balance as well as a credit balance of the same party, is it better to show them netted of or as separate items ? What is the better form of presentation? |
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well, in accounting the word "better" is not defined as such. We should strictly follow the accounting standards.
anonymousCA
(na)
(75 Points)
Replied 27 December 2012
What does the relevant accounting standard say ?
CA Sourabh Goenka
(Chartered Accountant)
(249 Points)
Replied 28 December 2012
hi rima,
if the account are of same nature then 100% it should be net off amount will be shown.. you can't make two ledgers for the same account..
but if the both account are different nature say one is loan account and one fall in debtors account, then you can show different.
But first tell me the nature of both the accounts ??
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