Baddebts

Dear,

There can not be bad debts in case of Sundry Creditors.

I think u want to say that a creditor is not demanding the payment - this will be counted as yr income in a particular year in which u reverse yr creditors.

Creditors---------DR.

             To Income(Under relevant head)

Relevant head will mean that the income will be recognised as per nature of creditor(i.e. for Exp. or for Goods).

Sunil