hi
if some purchased assets for rs 60000(say). Asset was booked on this amount. later on because of some dispute only 52000 were paid balance is not to be repaid.
After two yr of above company now wants to write off this bal 8000
what should be the treatment either it will go to p& l or reduced from cost of fixed assets?????
plz suggest.....
If the full amount of Rs8000/- has been charged to P&L as depreciation , then credit back that amount to P&L.
If say a partial amount Rs5000 is charged to P&L as depreciation , credit back Rs 5000 to P&L. Balance of Rs 3000 deduct it from that asset appearing in balance sheet.
Both the treatment is possible only after 2years(said by you). Assuming you have decided to write off bcz of non payment.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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