Balance Transfer between Ledger

Please Guide,

Transfer of Ledger Balance from One Ledger to Another Ledger in Books with different PAN is allowed?

Is any provision from any law blocks this type of transactions?

For Eg, receivable from Mr A is adjusted with advance received from Mr B

Replies (3)
Quick Summary
This discussion explores the permissibility of transferring ledger balances between accounts held by entities with different PANs. Specifically, it addresses whether a receivable from one party can be offset against an advance from another. While seemingly possible if the underlying transactions are genuine, experts advise against this practice. The recommended approach is to return the funds to the original payer and receive them from the intended recipient to prevent potential complications during tax assessments.

As far I know it is allowed if the transaction happens really. but here I am not able to understand the point is why do you want to transfer the balance from one a/c to another a/c. have you passed this entry by mistake. It's totally depends on case to case basis
Mr A have some receivable from Mr B in there direct transactions. I am not involved in that transaction.

I received money from Mr B in last month, but now he wants me to transfer the same to Mr A's ledger in my books.
No it's not advisable you should return money to mr. b and received it from mr. a otherwise you have to face problems in assessment

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