Hello,
My question is in case of a situation where we have to make rent payment on behalf of third party and where we have parked the receivable entry on that third party a/c if that pary denies or fails to pay or reimburse me can I pass bad debts entry for that.
Endorsee/receivables a/c
To Endorser/payables a/c
The above is the situation and then if he doesn’t pay
Bad debts a/c
To Endorsee a/c
or
Endorser a/c
bad debt a/c
To Endorsee a/c
this is for a situation where you cancelled your payments against receivables and carried forward the loss if any
CAclubindia
