Accounting entry

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Fy -2015-16 An amount of Rs2500 as Telephone charge payable. fy 2016-17 these amount not settled and shown in accounts as payables. what is the journal entry for writing off the liability payable

Replies (6)
Debit Telephone charge payable & Credit cash.
Telephone Charge Payable A/c to Cash
telephone charges A/c. dr
to p and l
because you tell about writing off. tell me if I am not correct
If payment is not made & u have to only wrie off it from books then correct entty is

Telephone Charge Payable A/c
To P & L

However if amount is already paid but no entry made in books then it is prior period item & entry for that is
Telephone Charge Payable A/c
To Capital A/c

If u have to pay this amt in future then no entry is required. It will shown in next year as payable.

Question is how to write off the liability from books of accounts. following is the entry.

Telephone Charges Payable A/c Dr.  Rs. 2500/-

    To Debit / Credi Balances Written off  Rs. 2500/-

The net balance of Debit / Credit Balance Written Off, if it results in Dr Balance, it wll go    P& L  A/c as expenses and if it results in credit balance, it will be reflected as income under Misc Income & will appear at the credit side of P& L A/C.

 

 

 


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