How to adjust dr and cr with two separate parties,

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Naveen Saini (Querist)

20 February 2013 Dear Sir,

We are "A" company and "B" company is our debtor for Rs.1 Lac,

Now "B" is unable to pay, so he says to collect this money from his debtor "C" company,

So what formalities are authenticated by income tax act and how to we proceeds for this system,

Thanking You,
With Best regards,

Naveen Saini

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)

20 February 2013 in your Books B has balance of Rs.1 Lac

first you have to collect Rs.1 Lac from C

Bank A/c.....Dr Rs.100000
to C Rs.100000

then you have to adjust B & C A/c

Pass an entry

C A/c.......Dr Rs.100000
To B Rs.100000

it is allowed under income tax for netting

Naveen Saini

Naveen Saini (Querist)

20 February 2013 Dear Sourabh,

My question is that practically how to proceeds, like issuing debit note or credit note or BP / BR or anything else,

The Company "C" how can pay to us without instruction of the "B" company,

regards,

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)

20 February 2013 B endorse his bill to you for which he is receivable from C
and stating the Instruction or a covering stating
that the amount should be paid to you

Naveen Saini

Naveen Saini (Querist)

20 February 2013 any particular name of this type letter?

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)

20 February 2013 Endorsement of Bills of Exchange

Naveen Saini

Naveen Saini (Querist)

20 February 2013 Thanks Dear,

Naveen Saini

Naveen Saini (Querist)

16 March 2013 Dear Sourabh,

Do you have it's draft format also,

If yes then please arrange urgent basis,

regards,
Naveen Saini

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)

16 March 2013 March 16, 2013
M/s. C co.
Address

Subject: Settlement of Outstanding through endorsement
Dear Mr. XYZ,
It is to inform you that as per the terms of the P.O. no_______ the bill no ____ is due for payment, but since the same bill is being endorsed to M/s. A co. we request you to pay the amount to M/s. A Co. Address__________on our behalf. Please release the payment to the party mentioned at the earliest.
Thank you for your continued support. We are looking forward to your honor on the said endorsement.
Yours truly

Mr. ABC
Authorized signatory
B Co,

Naveen Saini

Naveen Saini (Querist)

16 March 2013 Thanks a lot Dear,

With Best Regards,

Naveen Saini

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