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Definition of write off and write back ? URGENT

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Definition of write off and write back ? URGENT

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Quick Summary
Write off means removing an unrecoverable amount or worthless asset from books as a loss, such as bad debts or obsolete assets. Write back means reversing a previously created provision or liability when it is no longer required, thereby increasing profit.

1.A reduction in an individual's or a company's income as the result of an expenses. For example, an unpayable credit sale may be a write-off for the creditor, especially if the debtor declares bankruptcy. The bankruptcy means that the debtor is unable to pay the debt, which results in a loss of income for the creditor.

2.To take an asset entirely off the books because it no longer has any value.If an accrualbasis taxpayer has taken money into income when bills were sent out to customers,but then some of the bills became uncollectible, the taxpayer may write off the uncollectible ones as a deduction against income. Financial institutions are required to write off loans when they become delinquent by a certain amount.

3.write-back

• in Finance the process of restoring to profit a provision for bad or doubtful debts previously made against profits and no longer required.

Correct contribution towards CCI. Great Linesh......

 i want to pass on the discount to the customer through credit notes can it be called write off ?

Hi, Is there any guidelines as to after how much time an account payable can be written off. (Creditors who have not claimed for say 3+ years can they be written off). Is the write off goverened by any policy or principal or is it a company policy. Very urgent Thanks

 

Those bank accounts are called techniquelly write off.?

What is the meaning of this?

 What is the method of calculating these accounts? 


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