W/off as bad debt

let assume our party ABC pvt ltd not ready to pay Bill no. abc123 Net amt Rs.10,000/- Vat Amt Rs.1,000/- Gross Amt. Rs.11,000/- (party's outstanding amt. Rs.11,000/- same bill, bill is 2 year old)

we want to write off as bad debt, WHAT WILL BE ENTRY ?

1) Bad debt a/c      debit                  Rs.11,000/-

          To Party ABC Pvt Ltd a/c                                  Rs.11,000/-

OR

2) Bad debt a/c         debit                  Rs.10,000/-

     Output Vat a/c        debit                 Rs.1,000/-

                     To Party ABC Pvt ltd a/c                             Rs.11,000/-

in the 2nd entry can we take output vat Rs.1,000/- which was charged at the time of biling as input vat while writting off.

i know that we cant claim input vat after 6 month from the date of invice. am i correct?

please sugget. most urgent.

tanx

Replies (4)

1) We can not avail credit of VAT on Bad Debts.

Sapare sir u mean to say 1st entry is correct = i agree wit U

3) Sales a/c         debit                  Rs.10,000/-

     Output Vat a/c        debit                 Rs.1,000/-

                     To Party ABC Pvt ltd a/c                             Rs.11,000/-

(Being party not ready to pay bill no. abc123. therefore, bill reversed)

NOTE: (WE BOOKED CREDIT NOTE INSTEAD OF JV OF BAD DEBT)

IS THIS ENTRY CORRECT ?

Issuing credit note is appropirate.

It should be used only when actually goods are returned.

you should write off as bad debt only

but ca of the company (as employee of pvt ltd) not agree with the same. even he pass discount recived entry as;

Party a/c debit                Rs.XXX

     To Puchase a/c                              Rs.XXX

      To Vat input a/c                              Rs.XXX

(Being Discount received from party)

is this entry is correct?

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
21 August 2026
Accountant

A G International

Kolkata

B.Com

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details
Company
29 August 2026
Chartered Accountant

Velionit Consulting PVT LTd

Mumbai

CA

View Details
Company
ARTICLESHIP 26 August 2026
Article Assistant

ANIVESH CONSULTANTS LLP

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
Featured 11 September 2026
Audit Executive

RBSM Corporate Advisors Private Limited

Pune

CA

View Details
Company
ARTICLESHIP 24 August 2026
Chartered Accountant Articles

Rohit KC Jain & Co

New Delhi

CA Inter

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details