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
CAclubindia
