Bad Debts and Dr. bal w/o
This query is : Resolved
11 June 2008
What is the difference between bad debts and Sundry dr. balances written off.
Should these accounts be maintained separately?If yes, why?
Should these accounts be maintained separately?If yes, why?
11 June 2008
Bad debts are irrecoverable amounts. Amount involved is resonably significant. When efforts made to realise the amt fails, or it is considered that, such effort will not yeild desired reasult, the amt is treated as bad debt.
Dr. balances w/off(often used term is sundry balance w/off) is writting off of small/petty balances.
Since nature of both type of transaction are different, separate accounts should be kept.
More over, allowability of both type of expense are governed by different sections under IT Act.
Dr. balances w/off(often used term is sundry balance w/off) is writting off of small/petty balances.
Since nature of both type of transaction are different, separate accounts should be kept.
More over, allowability of both type of expense are governed by different sections under IT Act.
11 June 2008
Can you please mention the relevant sections of IT Act for both items..
11 June 2008
Bad Debts = (Sec. 36(1)(vii)
The other is residuary section = 37
The other is residuary section = 37
12 June 2008
Thanks
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
- Exiting partner in partnership firm in gst portal
- CLOSING STOCK QUERY
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- IT returns for fresh job holders
- F&O reporting in ITR
- Difff in ais receipts and gst turnover
- ITR 44AD SECTION
- Technical Glitch in ITR-4 Online Form (AY 2026-27): Sec 44AE Partner Remuneration not mapping to E8
- Residential status of non resident
- NRI INSURANCE ADVISOR
- DUE DATE FOR ITR FILING
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
- Query regarding reporting of exempt foreign remuneration in ITR (AY 2026-27)
- FEMA/RBI treatment — Amazon.ca arbitrage (US buy, Canada sell, goods never enter India)
- Goods return by customer
- INWARD REMITTANCE FOREIGN
- CPC and SAC
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
