Shalu Kumari 02 September 2019
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.
prasad Nilugal (Accountant and GST Practitioner . ) 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
prasad Nilugal (Accountant and GST Practitioner . ) 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 .