In an organisation amount of Rs.1,66,280 belongs to 3 suppliers
Organisation have alredy issued cheque for this amount in 2010
But the supplier did not claimed the amount
Now it was lying in Time bar cheques
Upto how much time it sholud be maintained under that account
what is the accounting tratment for that funds
Thanks in advance
Although period of limitation is 3 years,i.e the supplier cannot claim any legal remedy after 3 years,however companies do not write off the amounts for two reasons. First it becomes taxable u.s 41(1) and secondly due to courtesy. Its your wish,either write off the amount wholly as 3 years have passed or just carry them in books.
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