22 July 2020
I have substantial balance in Accounts Receivable a/c in my personal account as on 31-3-2019 which I had shown in Assets side of the Balance Sheet. Now my party is unable to give the interest amount which I had accounted as accrued income in Accounts Receivable a/c . How to make accounting entries for this loss of Party Interest Income and how to show the loss in Income Tax Return ?
25 July 2020
You could write off the balance:
Dr. Bad debts
Cr. Respective party ledger.
In the ITR, there's a option to show bad debts. if the amount of such write off is more than 1 lakh, you alsi need to mention the PAN of the party.
In case of any queries, you could also contact to the following id:
caankithjain@gmail.com
CAclubindia
