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Sundry creditors w/off

Pratik Surve (Assistant Professor ) (571 Points)

12 November 2018

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

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prasad Nilugal ( GST Practitioner & Accounts ) (14149 Points)
Replied 12 November 2018

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

prasad Nilugal ( GST Practitioner & Accounts ) (14149 Points)
Replied 12 November 2018

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

prasad Nilugal ( GST Practitioner & Accounts ) (14149 Points)
Replied 12 November 2018

please do not consider above entry

Pratik Surve (Assistant Professor ) (571 Points)
Replied 12 November 2018

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

prasad Nilugal ( GST Practitioner & Accounts ) (14149 Points)
Replied 12 November 2018

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

Pratik Surve (Assistant Professor ) (571 Points)
Replied 12 November 2018

OK THANKS

SO WHAT WILL BE CORRECT ENTRY???

prasad Nilugal ( GST Practitioner & Accounts ) (14149 Points)
Replied 12 November 2018

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

Pratik Surve (Assistant Professor ) (571 Points)
Replied 12 November 2018

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

???

prasad Nilugal ( GST Practitioner & Accounts ) (14149 Points)
Replied 12 November 2018

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 .

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