Change of one person account to another person account
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
10 October 2016
Assessee C has debtors due from A of Rs. 40 lac. Now C wants to show in accounts debtor due from A - Rs. 20 lac and from another person B- Rs. 20 lac. (about which- A said B will pay on behalf of me). If this entry is correct to show in audited accounts when no sale is made to B and showing his name in accounts by entry only.
13 October 2016
Ideally, the liability of A cannot be extinguished and shouldnt be extinguished in books.
It is possible A and B have some inter debt and this mode of settlement is only a mode of payment.
By changing the account under which the debt is shown the liability of A to C does not get extinguished. If B fails to pay C, C is still going to enforce the debt from A
The only way to do this is to enter a tripartite agreement wherein A transfers debt to B with C a party to the agreement.
It is possible A and B have some inter debt and this mode of settlement is only a mode of payment.
By changing the account under which the debt is shown the liability of A to C does not get extinguished. If B fails to pay C, C is still going to enforce the debt from A
The only way to do this is to enter a tripartite agreement wherein A transfers debt to B with C a party to the agreement.
Querist : Anonymous
Querist :
Anonymous
(Querist)
13 October 2016
Thank u very much sir.
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
- About TDS & Income Tax
- Scrutiny and reopening of past returns
- PPF interest-As Exempt Income disclosure
- Pass word to open justification report for Q1 for FY 2026-27
- Section 194JA & JB Income which ITR Form to use
- Booth for sales promotion
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- Average Cost Of High Quality Diamonds
- Regarding ITR filing with more value than showing in AIS/TIS
- TDS on Rent received on redevelopment of building
- Tax on Deemed Capital Gain
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
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
