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.

Anand

Anand (Expert)
Follow

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.

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

nilesh

NITHIN GEORGE

N.VENKATARAMAN

Rajat Khandelwal

PIYUSHBHAIPOPAT

Subscribe Now

Change of one person account to another person account

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

CA Final

GST CONSULTANCY

GST CONSULTANT

Accountant

Senior Executive

Manager- Finance and Compliance