19 June 2007
i have a creditors which not claim his amount last 5 years so his liability written back & shown my income. now he come my office & demand his money. what can i treat this situation in my books ?
19 June 2007
you must have to provide in the books as only connotation that a liability is 5 years old doesn`t support for writting it off. Only one exception would be in a case where your creditor vannot claim their amount in persuant to any law/regulations
09 July 2007
If the creditor has not sent any letter demanding his credit balance since last 3 years and you have also not confirm his credit balance anytime within 3 years, then he cannot claim it through Court of Law. If he is demanding continuously and you are not paying due to any reason then the situation will be different and you have to pay.
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