Bad debt realisation - accounting treatment
This query is : Resolved
21 April 2013
An Invoice raised in FY 12 for $100 was written off as bad debt in FY 13 (say on 31st March 2013). Subsequently the client pays this $100 in FY 14 (say on 2nd April 2014) not knowing that it was w/off as bad debt. Please explain the treatment of this $ 100 received in the light of relevant Guidance Notes. Whether it should be treated as Advance for Future Sales or a new Invoice need to be raised for the equivalent amount?
22 April 2013
Dear Sayanth
this is neither advance nor the new invoice is required. first you have booked the bad debts now make a reversal and treat this receipt as income. it can be identified by preparing the customer's account reconciliation. if you are not practising the customer account reconciliation then start it from now for future use.
this is neither advance nor the new invoice is required. first you have booked the bad debts now make a reversal and treat this receipt as income. it can be identified by preparing the customer's account reconciliation. if you are not practising the customer account reconciliation then start it from now for future use.
30 June 2013
This is covered u/s 41 of the income tax act and you have to show the same as income. For other matters I agree with the expert
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Regarding appeal to GSTAT
- Regarding TDS Applicability For Director Remuneration
- LC charges in relation to Asset purchased should be Capitalised ?
- SALE OF MOTOR CAR BY REGISTERED INDIVIDUAL
- Value of property in capital gain
- Multiple trade mark
- Transporter Declaration form
- Copyright software
- TDS APPLICABILITY......
- Opting our of sec 44AD
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
