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Difference between write off and write back


Hi every one,

Please help me in knowing what is the differnce between amount written off and written back.

Pl comment

 
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according to me writing off means to close or reduce the account of fictious assets and writing back means taking into account again the asset or liabilty earlier written off

 
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hi

written off is reducing debit balances which are no longer and show as an expenses. however written back is reducing credit balances and claiming as income.

 
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(Guest)

Dear Frind,

Write off means you can say it is Profit  & Write back means Loss.

 
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DIFFERENCE BETWEEN WRITTEN OFF & WRITTEN BACK:

WRITTEN BACK:- IT MEANS TO TAKE REVERSE THE EXCESS PROVISION MADE.

FOR EXAMPLE IF YOU MAKE A PROVISION FOR SUNDRY CREDITORS AND AFTER MAKE ALL ACCOUNTING ENTRIES THE PROVISION FOR CREDITOR A/C REMAINING BALANCE THEN YOU CAN MAKE A REVERSE ENTRY OF THIS BALANCE AMOUNT AND IT MAY IMPACT REVERSE OF THE PREVIOUS ENTRY IN P/L A/C.

WRITTEN OFF: IT MEANS THAT YOU HAVE A BALANCE IN YOUR BOOKS AND IT MAY NOT POSSIBLE TO REALIZED IN FUTURE.

TO CLEAR THE BALANCE IN THE BOOKS OF ACCOUNT THESE TYPE OF AMOUNT CAN BE WRITE OFF.

I THINK NOW IT IS CLEAR THAT ONE IS USED FOR ADJUST THE EXCESS PROVISION AND OTHER IS USED FOR UNREALISED AMOUNT.

REGARDS

RAJESH

 
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Provisions & liabilities are "written back" whereas "write off" is assoiciated with balances i.e. assets which are no longer realisable.

This is what was told to me by my senior once, I hope it is clear.

 
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Hi alok,

Thanks a lot for your reply.

 
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okey

what is provision for creditors???

wat z its nature??

y  z it created??

wat z its treatment??

whr does it appear??

 
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Chartered Accountant


What is the journal Entry to be passed for Write back of creditors(with say Rs. 10,000 Cr.) no longer payabe in books???? 

 
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CA FINALIST


As far i think write back of creditors is to raise the balance of creditors. So if it is that then entry will be:

P/L  Dr

To Creditors

as to reduce the creditors which are no longer payable we must have passed:

Creditors Dr

To P/L


Total thanks : 1 times

 
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