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Bed debtos Balance in books

367 views 10 replies

Sandeep Jain

Pivate

1486 Points Joined July 2019

Sir,

in books of account Dr. Balance of two debtors Rs. 14550/- its pending from years Can we show Under PNL a count bed debtors or adjust with Capital account.

please advise

Replies (10)

Nikhil Kaushik

Fellow CA

86871 Points Joined June 2009

you need to transfer the bad debts to the P&L account.

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Yes I agreed with Mr Nikhil Kaushik Sir reply...

@ Mr Sandeep Jain,

You account/(transfer) the long pending amount in PandL account as Bad debts.

sabyasachi mukherjee

28018 Points Joined May 2017

No first step provision , then write off

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Provisions...???!!!!!

What You mean @ Sabyasachi Mukherjee Sirrrrrrrrr...???????????????

Sandeep Jain

Pivate

1486 Points Joined July 2019

Mr.Mukherjee.

provison. What Provision

sabyasachi mukherjee

28018 Points Joined May 2017

Learn from book

Sandeep Jain

Pivate

1486 Points Joined July 2019

Raja Sir, & Nikhil Sir
if i show under PNL Account so can be face any query Notice from IT department in future.

See, There is no query on write off. But you need to establish that it is a bad debt. If the amounts are large and your case is picked for assessment, AO may want to see the evidence for efforts made to recover the money.

Now, in your case, amounts are small, so I do not expect an AO to focus on it.

Sandeep Jain

Pivate

1486 Points Joined July 2019

Thank you very much Nikhil Sir,

RAJA P M

"Do the Right Thing...!!!"

128116 Points Joined January 2015

Yes , I agreed with Mr Nikhil Kaushik Sir view...

And,

Note the points also, In case You received the amount in future then it will be account as Your income...
So, before account the bad debts ask again to the customer for payment.