Dear Fourm Members,
kindly give me a solutions to Write off the creditors and debtors which is lying more than 3 years in our books of entries,
Drs - AED. 495000/- and CRS - AED.59000/-,
i'm in sharjah, UAE. Kindly give me solutions to implement in our books of accounts.
It is advisible to open an SUNDRY BALANCES Written OFF account and transfer all balances of creditors/debtos which need to be written off and the net balance in this account will be tranfered to profit & loss account.
Thank you Mr.Nitin,
kindly tell me that we need to net off the Drs & Crs Balance and the net amount should be transfer to provision for write off, and that amount can be utilised for the write off
My conclution taken is first net off Drs with Crs. the amount comes to 436000/- AED.
for this i have transfer to Provision for Write off account (in provision/Liability) from P&L Account, and i plan to make utilise this amount for write off the Crs and Drs.
is this is ok to proceed, kindly confirm.
CAclubindia
