Debtors
This query is : Resolved
19 November 2019
A customer's ledger shows credit balance, but by mistake our staff write-off that credit balance by discount received a/c . What to do to correct this ledger account?
20 November 2019
Keep the balance without write-off if business is live.
20 November 2019
As informed the entry is wrongly made , you are supposed to reverse the entry.
The original entry :
Customer account debit
Discount received credit
Reversal entry
Discount received Debit
Customer account Credit
Due care to be taken while written back customer account like confirmation of balance to be obtained from customer through letter or mail. If the company has policy of written off or written back over 3 years balance of creditors or debtors and if the debtors or creditor balance shows unclaimed balance over 3 years , that amount may be written back to books.
The original entry :
Customer account debit
Discount received credit
Reversal entry
Discount received Debit
Customer account Credit
Due care to be taken while written back customer account like confirmation of balance to be obtained from customer through letter or mail. If the company has policy of written off or written back over 3 years balance of creditors or debtors and if the debtors or creditor balance shows unclaimed balance over 3 years , that amount may be written back to books.
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
- Tax Audit u/s 44AB for Transport Business A proprietorship is engaged in transportation business and
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
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
