Write off or adjust payable

STAFF WELFARE A/C DR 700

TO INCENTIVES A/C 700

(being icentives provided to emoloyes)

P&L a/c dr 700

TO STAFF WELFARE A/C 700

(being expenditure transferred)

if incentives is not paid then,

Incentives a/c dr 700

TO Incentives payable a/c 700

(being liability created)

At the time of payment,

Incentives payable a/c dr 700

to bank/cash a/c      700

CORRECT ME IF I AM WRONG,

THANK U

If you know that the amount will not be claimed...then write it off....

1) just reverse the original entry

Incentive Payable a/c  Dr.

     To Incentives a/c

2) write it off

Incentives Payable a/c Dr.

   To Sundry Balance w/off

the first one is a better treatment