30 June 2013
In my company Balance Sheet as on 31.3.2013 i have Trade credit balance of Rs 2 Cores. and simultaneously Trade Debtors (Receivable) is also have Rs 2.10 Cores. My Question: 1.Can I approach My Trade Debtors to Clear his balance by Paying my Trade Creditor directly. 2. Can I Pass Journal Entry by taking a letter / Declaration by Trade Creditor & Trade Debtors.
other wise what will be the procedure to close these two ledger account ?
30 June 2013
You can do so if both the groups agree in your favour. You have to create sufficient evidences to substantiate the transaction. JV can be passed on the basis of documentary evidences available with you. .
30 June 2013
Agree with learned expert. Documentary evidence showing that both the trade creditors and trade debtors have agreed to this will be required to pass the Journal entry.
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