Q1- Sushil kumar has compounded with his creditors. I have accepted acomposition of 62p in the rupee on a debt of Rs.4800 due from him.
Q2- sunil kumar compounded with his debtors. Accepted a composition of 35p in the rupee out of a debt of Rs.1000.
Shalu Kumari (1 Points)
02 September 2019Q1- Sushil kumar has compounded with his creditors. I have accepted acomposition of 62p in the rupee on a debt of Rs.4800 due from him.
Q2- sunil kumar compounded with his debtors. Accepted a composition of 35p in the rupee out of a debt of Rs.1000.
prasad Nilugal
( GST Practitioner & Accounts )
(14151 Points)
Replied 02 September 2019
1) Sundry Creditors A/c Dr 4800/-
To Bank A/c Cr 2976/-
To Sundry creditors written off A/c Cr 1824/-
( Payment to sundry creditors 0.62 out of 1 rupee , balance written off )
2) Bank A/c Dr 350
Bad debts A/c Dr 750
To sundry debtors A/c Cr 1000
( Payment received 0.35 out of rupee form debtors balance bad debts )
At the end of the year bad debts & creditors written off will be transfer to profit & loss a/c
sabyasachi mukherjee
(25983 Points)
Replied 16 September 2019
prasad Nilugal
( GST Practitioner & Accounts )
(14151 Points)
Replied 20 September 2019
Mr Mukherjee will you please elaborate ?. Nomenclature ?.
sabyasachi mukherjee
(25983 Points)
Replied 20 September 2019
prasad Nilugal
( GST Practitioner & Accounts )
(14151 Points)
Replied 25 September 2019
@ Dear Mr Mukherjee Why should I call you , If you think any thing wrong then please explain bellow details . bad debts and sundry creditors two different cases .
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 16 November 2020
I’m not sure about written off, to me, compounding is interest payable and
creditors dr. 4800
interest dr. 2976
To Bank 4800+2976
Similarly,
bank dr. 1350
To interest received 350
To receivables / debtors 1000
Assuming that it’s full and final settlement.
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