Accounting treatment against recovery
This query is : Resolved
Ritesh Mathur
(Querist)
18 May 2019
Dear Experts please advise
We are doing recovery of some amount from our Vendors or Transporters or Employees against related losses.
Please advise what should be the accounting treatment to book
1. Should I net off / reduce the related expenses
2. Should I show these recoveries in Cr/Income side in P&L as 'Recovery from Customer/Transporter/Employee" under group other income
We are doing recovery of some amount from our Vendors or Transporters or Employees against related losses.
Please advise what should be the accounting treatment to book
1. Should I net off / reduce the related expenses
2. Should I show these recoveries in Cr/Income side in P&L as 'Recovery from Customer/Transporter/Employee" under group other income
Amol S Joglekar
(Expert)
07 June 2019
you can net it off.
But if the amount is substantial, then show separately
But if the amount is substantial, then show separately
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