My question is if the following bad debts are deemed irrecoverable by a firm selling Iron products, will they be allowed under 36(1)(vii)?
1. Debtors who took goods on credit and did not pay the firm.(Bad debt in normal course of sales)
2. Advances given to suppliers for which no goods were received(Advances to suppliers gone bad)
3. Advances given to employees who left the firm and did not settle their dues.
Please state your reasons too.
CAclubindia
