Bed debts


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Querist : Anonymous

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Querist : Anonymous (Querist)
03 January 2012 My Company was paid sum of27794 to another employee as advanced on 25.03.10 but he left on 01.4.10 . he said i will not pay that amount
Can i treat this amount as bad debt

03 January 2012 Bad debts relates to only that unrecoverble amount which pertains to trade debtors and also that amount which we have considered as our income. As advance given to employee does not effect the profitability you can't treat that as bad debts. You can charge it through capital a/c but not through p&l a/c.


03 January 2012 Bad debts relates to only that unrecoverble amount which pertains to trade debtors and also that amount which we have considered as our income. As advance given to employee does not effect the profitability you can't treat that as bad debts. You can charge it through capital a/c but not through p&l a/c.


12 May 2012 It will not be treated as bad debts. Bad debts pertain to DEBTORS.

Treat it as loss of cash.

A better option will be to show as salary as the same will not be questioned.


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