How tto Record entries

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self
289 Points Posted on 27 July 2021
sir i need to know that how i can record the entry of late fee & penalty in books of a/c and where will be the effect of these entry hit wheather p&l or capital a/c
pls clear this doubt from my mind
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On 27 July 2021 at 13:17 Report
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This discussion clarifies how to record late fee and penalty entries in accounting books. Both late fees and penalties should be debited to the Profit & Loss account. While late fees are generally an allowable deduction for income tax purposes, penalties are typically not.

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210 Points Posted on 27 July 2021
It it a proprietorship or comapny or partnership ?
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On 27 July 2021 at 13:28
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CMA
13117 Points Posted on 27 July 2021

These are to be debited to p&l account. While late fee may be an allowable deduction, penalty is not an allowable deduction under income tax.

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On 27 July 2021 at 13:46

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