Adjustment of debtors - how?????????

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 August 2011
The balance of Mr.R.K. ("DEBTOR") standing in my books is Rs. 75000/- for the last 6 years. Now I have received Rs. 235000/- from Mr.R.K. as final settlement. I have always done sales with him. He has given Rs. 160000/- more than outstanding.
I am not able to arrive at whether he has paid the right amount (i.e. we may not have recorded the sales)or is a mistake on his part. If we are not able to come into conclusion by the year end, what is the solution of the same?
Whether we can show such amount under the head "Creditors" or else we need to adjust it in Profit & Loss?
If we need to adjust it in P&L then under which head it should be done?
If the answer to the above question is under the head "Sales", then the problem is that we have submitted our Sales Tax Return to the government of previous figures.
PLEASE PROVIDE ME WITH THE SOLUTIONS & ALTERNATIVES.

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 please look into the SAles Invoicewhich the comapny have raised in the past 6 years and even in back period in the name of R.K.

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 Plz also check there is no sister concern of Rk, with whom your company is having any transaction

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 plz refer the accounts of the last 7th year, was not there any balance being writeen off against RK

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CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 This may also happenns that RK may started the business in another name in the further years plz look for any such business if any

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 The excesss recipt from RK of Rs 160000 is not your income directly

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 You are not required to show the amount of Rs 1,60,000 as the sales income at all as u have not sold him anything during the year

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 Showing him as Creditor would be inappropraiate as u have not purchase anything from RK

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 You must show the amount as " Advance from Customer"
You can write off the income in any next year or keep it standing in book for few year and write off in the installments

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