Debtor creditor adjustment u/s 40a(3)
This query is : Resolved
03 April 2013
Dear All
Can balance of sundry creditor be adjusted with that of sundry debtor...they will adjust themselves..
in my books entry will be passed like this:-
X A/c( Sundry creditor) Dr.
To Y A/c (Sundry Debtor)
This question arises because as per section 40A(3) of Income Tax Act, payment of sundry creditor on account of purchase cannot be made by otherwise than account payee cheque.
Thanx in Advance!!!
Regards
Deepak Kakkar
Can balance of sundry creditor be adjusted with that of sundry debtor...they will adjust themselves..
in my books entry will be passed like this:-
X A/c( Sundry creditor) Dr.
To Y A/c (Sundry Debtor)
This question arises because as per section 40A(3) of Income Tax Act, payment of sundry creditor on account of purchase cannot be made by otherwise than account payee cheque.
Thanx in Advance!!!
Regards
Deepak Kakkar
03 August 2013
Book entries adjustment will not attract sec.40A(3)
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