I have a company based in Bangalore. We had received advance funds from an overseas company for an order. However due to some technical issues, we were not able to complete the order. Now we want to return the advance funds we have received from the company, But the overseas company has already shut down, which means that they do not have any active bank account in which we can remit the funds.
Since our business is not operational anymore, we plan on closing down the firm (proprietorship firm). My query is what happens to this outstanding liability since the company has shut down? How do I write off this liability? or what should i be doing ahead to clear this out?
CAclubindia
