Out standing Debit balance as advance given
This query is : Resolved
06 August 2008
hi,
What is the treatment to be done where there is an outstanding debit balance of a ledger which is in the nature of Advance given to a person and which is due from a long time. What is the entry to be passed to remove that debit balance and what would be its impact on Profits of the company. and which sections of IT Act would be applicable.
Plzz clarify.
What is the treatment to be done where there is an outstanding debit balance of a ledger which is in the nature of Advance given to a person and which is due from a long time. What is the entry to be passed to remove that debit balance and what would be its impact on Profits of the company. and which sections of IT Act would be applicable.
Plzz clarify.
CA Hemant T Dewani
(Expert)
06 August 2008
if the amount is against sales then it is a bad debds debited to p&l a/c if hand loan is given then no deduction is available u/s 36 of the I T Act
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