Accounts creditors

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Querist : Anonymous

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Querist : Anonymous (Querist)
18 March 2014 Mr.X is the creditors in abc ltd with Rs 650000, now Mr x goes away and not want to recover it. what is the treatment for abc ltd to setoff its creditors.

what is correct treatment?

18 March 2014 You will transfer the same to profit and loss account. The same is taxed in income tax under sec 41 as remission of liability

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Querist : Anonymous

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Querist : Anonymous (Querist)
18 March 2014 nikhil liability was stands in the b/s since 1.5 yrs. what should be the entry for this. and in which head


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