Chit fund

Save Share

This query is : Resolved

Quick Summary

This discussion addresses how a chit fund management company should record losses incurred on chits they've taken over. The key issue arises when the foreman holds more than one ticket, and a third party is unable to continue their subscription, leading the company to assume the ticket. The query seeks clarification on the appropriate accounting and taxation treatment for these specific loss scenarios.

chetan singhania

chetan singhania (Querist)
Follow

03 June 2020 Dear sir / Mam
how to record loss on self chits by a chit fund management company?
kindly explain treatment as par accounting and taxation purpose

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

05 June 2020 There won't be loss, if the Foreman has subscribed only ONE ticket.

chetan singhania

chetan singhania (Querist)
Follow

05 June 2020 Formen have more than one chit. such chit are in name of other party but that party is not able to continue that chit so company taken such chit on own name.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now