aCCOUNTING EFFECT OF........

well the corresponding effect will be given to Fixed Asset..

AGREED WITH RAVI

corresponding effect can be given to P&L provided, provision for creditors account is created, if not the effect should be given to Fixed assets....

who made provision for creditors there is no such provision it will be passed against fixed assets

It would be net amount that is after considering the depriciation if it is due to mistake taking  else entire amount would be added to fixed Asset as it is change in accounting estimate

In my opinion if Asset is not depreciated, then w/o against that fixed asset.

If depreciation has been provided in previous years, write back the amount of depreciation to P&L(Cr.) and bring back the Asset to its original value. Now Write off Creditors of Fixed Asset to Fixed Asset. Assumed that Asset is taken back by the creditor on some problem.

u have to give effect to fixed assests....coz creditor waiving some amount mean fixed assests have lesser cost...you should give effect to fixed assests

When u purchased the fixed assets from the party , u had debited the assets and credited the party.

               Therefore now a reversal entry has to be passed cosidering the depriciation factor

hi....there is some critical mistake with the opinions....

You can treat like it....

Condition No. 1

If creditors is giving the discount and in the same year, then you would take effect into Fixed asset account.

Condition No. 2

If you are writing off the creditors, as there is no discount providing by him or no one demanding/claiming the dues then you have to credit the same in P & L account. 

In condition no. 2, how you can credit the fixed asset account, while there is no impact on fixed asset value due to non claiming the dues by Vendor.

Originally posted by : Sandeep Yadav
	hi....there is some critical mistake with the opinions.... You can treat like it.... Condition No. 1 If creditors is giving the discount and in the same year, then you would take effect into Fixed asset account. Condition No. 2 If you are writing off the creditors, as there is no discount providing by him or no one demanding/claiming the dues then you have to credit the same in P & L account.  In condition no. 2, how you can credit the fixed asset account, while there is no impact on fixed asset value due to non claiming the dues by Vendor.

Your idea is also right. In my reply i assumed that full asset is taken back by creditor due to some problem.

i m also Agreed with Zamri Malik