Dr balance of creditors a/c

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rohit (Querist)
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07 March 2014 IS IT POSSIBLE THAT THERE IS DR BALANCE IN CREDITORS A/C
AND CR BALANCE IN DEBTORS A/C

HOW TO REVIEW THIS?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 March 2014 yes sometimes it is possible. normally it would happen on account of reversal of transactions after payments have been made.

rohit

rohit (Querist)
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08 March 2014 reversal of transactions means

Nikhil Kaushik

Nikhil Kaushik (Expert)
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08 March 2014 for eg. lets say you purchase something. so the entry would be purchases to creditor.

now assume you pay the outstanding amount to the creditor. so you pass the entry creditor to bank.

now if you make any purchase return, then you will pass creditor to purchase return.

thereby converting a creditor int a debtor!

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