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Sundry creditor (loan) write off limit provision applicable

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Kollipara Sundaraiah

B.com

2405 Points Posted on 08 April 2023

one of the individual business person sundry creditor rs:15,20,310/- (loan) as on dt:31-03-23.if assessess sundry creditor loan received amount previous years for 2013.
question:
assessess loan amount write off any limit period provision applicable in it act.

Replies (3)

Quick Summary

This discussion explores the write-off provisions for sundry creditor loans under the Indian Income Tax Act. It addresses whether there's a limit for writing off old loans and highlights the potential for the Income Tax officer to add the written-off amount to the business's income under Section 41(1).

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 08 April 2023

You can write off the liability, as there is no limit specified in act; but what about the creditors, whether the actual liability ceases?

If yes, you can write off the liability, but IT officer may add the same to your income as per sec. 41(1) of IT act.

MPR Sanjay Kumar

1675 Points Posted on 09 April 2023

@ Honourable Dhirajlal sir

Accounting for bonus issue Journal entries...

1.sanction of an issue bonus shares

capital redemption reserve ac DR.
securities premium ac DR.
General reserve ac DR.
profit and loss ac DR.

Bonus to shareholders ac CR.

2.issue of bonus shares

Bonus to shareholders ac DR.
share capital ac CR

3.partly paid to fully paid..

General reserve ac DR
profit and loss ac DR

bonus to shareholders ac CR.

4.making final call due

share final call ac DR.
share capital ac CR

5. adjustment of final call
bonus to shareholders ac DR
share final call ac CR..

could you please explain me elaborately of this journal Entries transactions why it is in debit why it is in credit how to judge as per golden rules of accounting please explain with the golden rules of accounting this general entries