Party interest income needs to be written off

This query is : Open

Kalpesh (Querist)
Follow

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 ?

CA Ankith Jain

CA Ankith Jain (Expert)
Follow

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

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok