What is the meaning of WRITTING OFF in Accounting ? Plz explain with example if possible... I have heard it lots of time but just learned it like a parrot but did not understand its true meaning now it is giving so much problem everywhere in accounting. Plz help
Thanks in Advance
Writing off means debiting the expense to the Profit and Loss Account.
For Eg : Bad Debts are written off which means when no money is recoverable from the Customer, his (Customer) account is credited and Bad Debts is debited. ie the debtor has turned bad or nothing is recoverable from him.
Regards,
Devendra Kulkarni
Expenses like depreciation and loss on redemtion is also wrten off....
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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