Accounting Entry & Tax Liabilities
This query is : Resolved
14 April 2009
Dear Expert
Please help regarding my queary about Debtors W/Off
last year(2007-08) my client tax liabilities as per audited balance sheet Rs. 3.00 Crore
but this year(2008-09)we observe in last year one of Debtors which amount approx 1.00 Crore which are likely Bed debts and not taken Bed & Doubtful debts provision and we want to take provision in this year
so please advise regarding how affect tax liabilities last year 3.00 crore and what entryies pass in account
Thanks
Please help regarding my queary about Debtors W/Off
last year(2007-08) my client tax liabilities as per audited balance sheet Rs. 3.00 Crore
but this year(2008-09)we observe in last year one of Debtors which amount approx 1.00 Crore which are likely Bed debts and not taken Bed & Doubtful debts provision and we want to take provision in this year
so please advise regarding how affect tax liabilities last year 3.00 crore and what entryies pass in account
Thanks
15 April 2009
Deduction of provision for bad debts is not allowable except in case of banking companies.
But deduction of bad debts is allowable as per sec.36(1)(vii).
But deduction of bad debts is allowable as per sec.36(1)(vii).
21 April 2009
i support...
entry for bad debt is
P&L a/c dr
to debtor a/c
and entry for prov. for b.d is
prov for bad debt a/c dr
to debtor a/c
& P&L a/c dr
to proc for bad debt a/c
entry for bad debt is
P&L a/c dr
to debtor a/c
and entry for prov. for b.d is
prov for bad debt a/c dr
to debtor a/c
& P&L a/c dr
to proc for bad debt a/c
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