Our company has not been able to recovery some receivables from clients for over 3 years. Is there a section in company law that gives us info on write off of these receivables?
24 October 2011
As per law of limitation u can not recover the money after 3 years. but if u are getting the balance confirmed by the debtors the three years period will start from the date of the last confirmation.
Further, coampny can provide for the debtors when management feels that the recovery is doubtful.
If any incident (huge losses by debtor, bankrupcy etc.) is noted which results in the non-recovery or company is unable to recover after due followups, then it can be written off after getting management approval in writing.
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