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Write off sundry creditor

A/c entries 43839 views 13 replies

I want to write off 1,00,000 sundry credit bal.  What ledger should I create & under which GROUP so that a/c entry is properly done.  I am using TALLY for my accounting entry.

Thanx in advance

Replies (13)
Quick Summary
Sundry creditors write-off means removing liability from books when not payable. Common entry is Creditors A/c Dr and Creditors Write Back A/c Cr. The write-back is treated as indirect income (or P&L income), and proper ledger grouping in Tally is usually under Indirect Income.

You need record income to write off a creditor. Entry is as follow: Creditor A/c Dr 100000 To Creditor Write back A/c Cr 100000

u have to write off the individual creditors account by the debiting their account and credit the Creditor Write back A/c . please also keep in ming the tax implication of writting off the creditors. it might be considered as ur income. Please tell me if any other opinion is there...

U may Also Adjust Creditor written off with bad debts or transfer to PL Accounts

I agree with Sonu regarding writing off the creditors account against bad debts if any or book as profit.

Harpreet,

What should be the tally GROUP for "Creditor Write back A/c" Cr 100000?

 

What should be the tally GROUP for "Creditor Write back A/c"?

Somebody please reply this.

"Indirect Income"

depand on creditors or debtors. accordingly will be passed the entry.

Debit Creditors a/c and Credit Creditors write back a/c

What if i dr. the "Creditors A/c" and cr. the "Capital A/c", bcoz in ITR form there is no where mentioned whether i have any creditors or not ?

Sir,

If we pass the entry debit creditor's account and credit Creditors write back account it's again a balance arise in the ledger of creditors write back account so how to fully remove from the balance sheet.  Please let us know more..?

 

Hello , Sundry creditors 10000/- bt we are not paying to creditors we are take as profit entry??

Three possible solutions I have found out- i) credit the balance directly to pl a/c...in that way you have to pay income tax on it...ii) we can directly credit it to capital a/c but not sure abt the implications..iii) we can adjust the balance with cash..

 

 

 


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