Adjustment of Balance
This query is : Resolved
04 February 2023
Dear Sir/Madam,
When we are dealing with the party which is our Debtor and one party is our Creditor, then whether we can set off the balance of Debtors against Creditors or vice versa? Please reply as early as possible.
Please note that both parties (Debtors and Creditors) are not related to each other, but they are agreeing for adjustment and can we assign our debtors to that particular creditor.
Regards
Anuj
When we are dealing with the party which is our Debtor and one party is our Creditor, then whether we can set off the balance of Debtors against Creditors or vice versa? Please reply as early as possible.
Please note that both parties (Debtors and Creditors) are not related to each other, but they are agreeing for adjustment and can we assign our debtors to that particular creditor.
Regards
Anuj
CA R SEETHARAMAN
(Expert)
04 February 2023
Yes, take a concent letter from the creditor.
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