Sundry creditors w/off

WE HAD PAID SOME AMOUNT AS ADVANCE TO OUR SUPPLIERS BUT WE HAVE NOT REC'D INVOICE AND MATERIAL TILL DATE. SO NOW WE WANT TO W/OFF THIS DEBIT BALANACE OF CREDITORS. SO PLZ TELL ME HOW CAN WE ADJUST THIS CREDITORS AND WHAT WILL BE ACCOUNTING ENTRY FOR THE SAME TO W/OFF. 

THANKS IN ADVANCE

Replies (14)

You can writeoff  by passing  following  J.E . 

Sundry  Creditors   A/c                          Dr   

Sundry  Creditors  writen  off    A/c           Cr  

( Being  Creditors  W/off  for long  out standing ) 

- Creat  Sundery  Creditors  W/off  A/c  under  Indirect  Income  under  Profit  & Loss  A/C 

 

Sorry  some correction is requried  in above entry , please do consider  above entry 

please do not consider above entry  

BUT CREDITORS HAS ALREADY SHOWING DEBIT BAL. SO HOW CAN WE DEBIT THIS AGAIN 

yes you  are correct  , so I told you not  consider  that  entry  , That  entry  will be  when  you write off  creditors . 

OK THANKS

SO WHAT WILL BE CORRECT ENTRY???

Have  to  taken  Advance  to Creditors  under  Loans and Advance in Asset  side ?. 

SO BASICALLY U R SAYING CREATE ADV TO CR LEDGER

BUT THEN ENTRY WILL BE...

ADV TO SUPP A/C  DR

    TO BANK A/C  

???

 

you are correct   you 1st  entry will be 

1) Advance  to Creditors  A/c   Dr  

    To Bank                                 Cr 

( Being  advance paid  to creditors )  . Advance to creditors a/c will be under Loans & Advance in Asset  side . No GST on advacne payment  for goods . 

 

Now  you  have  not  received  the goods nither  the invoice  for long  time 

so you  can W/off  by passing following  entry 

2) Goods lost      A/c                        Dr 

    To Advance  to creditors  A/c       Cr 

   (  Being  goods  not  received  , Ad W/off )

Goods lost will be  under profit & loss  direct  exp  . you may  take other  opnion also .

 

You may also creat  Goods  not  received  A/c  insted  of  Goods  lost  . under profit & loss A/c  direct  Exp .

OK THANKS MR PRASAD..

SO IT WILL BE CONSIDERED AS LOSS ULTIMATELY 

yes  its  loss  that is why  we debiting to  profit& loss  A/c  . 

OK I GOT IT

REALLY THANKS..

Well  come 

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