How to write off debtors balance

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2014 Hello, I have a problem in my last year f.y. 13-14 balance sheet, in that I booked some sales twice wrongly. And it found after close accounting year and file sales tax return but before audit. Now in my balance sheet I don't want to show excess amount of debtors. I just know the various options to how to reduce my firm's debtors closing balance. In my books already over cash is maintain so I can not entered cash recd entry from debtors.

Querist : Anonymous

Querist : Anonymous (Querist)

25 September 2014 In that case I can I creat credit note with the name of suppliers? But I think for this I need debtors confirmation for this at the time of audit. But actually only in my book sales is record twice. So debtors confirmation is not possible. What can I do for this.?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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26 September 2014 Pass a journal entry reversing sales. State in the JV as reversal due to sales recorded twice with ref. to sales journal.
No debtor confirmation is required for this. Auditor will be satisfied after verifying original records and sales tax return.

Querist : Anonymous

Querist : Anonymous (Querist)

27 September 2014 Sir the problem is that the sales figure already disclose in excise return and sales return also. If I pass a reversal jv then sales will be reduce. I want to reduce debtors balance without reducing sales. Pls reply

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 September 2014 It is a genuine rectification for twice booking sales wrongly. Pass the entry reducing the sales, you can satisfy the auditor by showing the evidence of invoice and gate pass.
If possible rectify sales tax and Excise return.

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