Accounting entry for creditors

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CA Roshan Jha (Querist)
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03 November 2014 Dear Sir/Madam,
In last year as per the discussion with client some creditor's balances were written back. But in current year the payment is made to such creditors. Than how to balance such creditors, as it will be showing debit balance of creditors with such payment amount at the end of current year.

Thanks in Advance.

CA Parul Saxena

CA Parul Saxena (Expert)
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03 November 2014 Creditors amount written back(under Indirect exp.)Dr.....................
To Bank............................

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CA Roshan Jha

CA Roshan Jha (Querist)
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03 November 2014 Thanks for your Prompt reply. In case of your reply the amount will not hit to that Particular creditor, than it may create problem in case of confirmation etc. Please clarify.

Ganeshbabu K

Ganeshbabu K (Expert)
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03 November 2014 Please do reconcile creditor wise written back amount and amount paid out of written back amount
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You may expense/capitalise as applicable at the time of payment in current year depend on how u treated in previous year.
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.may be expences as said by above expert

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