W/off of closing balances
This query is : Resolved
15 December 2011
Dear Members,
A company has Turnover of 4 Crores.and as on 31st March . Debtors of 10 lacs have been w/off.
Is there no limit on the amount to be written off.
Thank you.
Dear Members,
A company has Turnover of 4 Crores.and as on 31st March . Debtors of 10 lacs have been w/off.
Is there no limit on the amount to be written off.
Thank you.
19 December 2011
Hi..
There is no limit on the amount that can be written off by the Company since it depends upon the decision taken by the management.
However as an auditor, we need to see the reason behind such written off. If the amount is material enough and is a continuos one, then we should look into the Going concern of the Company.
Also, we need to verify whether any subsequent sales has been made to same parties whose balances are written off and obtain reason as to such decision.
Hope this clarifies ur query.
There is no limit on the amount that can be written off by the Company since it depends upon the decision taken by the management.
However as an auditor, we need to see the reason behind such written off. If the amount is material enough and is a continuos one, then we should look into the Going concern of the Company.
Also, we need to verify whether any subsequent sales has been made to same parties whose balances are written off and obtain reason as to such decision.
Hope this clarifies ur query.
22 December 2011
In case if there is subsequent sales with the party whose account has been w/off than what should be done.
thank you.
In case if there is subsequent sales with the party whose account has been w/off than what should be done.
thank you.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst registered proprietorship firm
- Price inclusive or exclusive of GST while made entry in P& L Account
- TDS Challan - change of FY 2025-26 to TY 2026-27
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Minimum tax payable to file Updated return
- Non filing of I T Returns
- UDIN ISSUE
- Change Of Karta In Case of Death
- SALARY CAN BE CAPITALIZE
- GST Intimation due to Government took possession of Business Premises under PPE Act
- TDS on Fixed Assets purchased
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
