Expenses and loss

deepak kumar (sr accountant) (114 Points)

24 April 2013  

Dear Sir,

in financial Year 2012-2013, my firm is in loss , i do not want to file loss return , i have made expenses by mode of cheque ,  if i dont want to book expenses aginst payment made by cheque ,  if i dont book expenses party stands with debit balances , can i make entry as cash refunded  from party to clear this debit balances. Please give your sugesstions.