Write off or adjust payable
CMA RAVI (ASSISTANT MANGER - FINANCE) (478 Points)
21 March 2013
How to write off incentive payable balance say rs. 700/-
VIKAS.A
(SOMETHING IS BETTER THAN NOTHING)
(1095 Points)
Replied 22 March 2013
STAFF WELFARE A/C DR 700
TO INCENTIVES A/C 700
(being icentives provided to emoloyes)
P&L a/c dr 700
TO STAFF WELFARE A/C 700
(being expenditure transferred)
if incentives is not paid then,
Incentives a/c dr 700
TO Incentives payable a/c 700
(being liability created)
At the time of payment,
Incentives payable a/c dr 700
to bank/cash a/c 700
CORRECT ME IF I AM WRONG,
THANK U
Jishnu Surendran
(Finance Manager)
(312 Points)
Replied 23 March 2013
If you know that the amount will not be claimed...then write it off....
1) just reverse the original entry
Incentive Payable a/c Dr.
To Incentives a/c
2) write it off
Incentives Payable a/c Dr.
To Sundry Balance w/off
the first one is a better treatment
CAclubindia
