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Writing off bad debts

Kamal (Student) (65 Points)

29 October 2019

Can bad debts be written off against a solvent debtor? The solvent debtor in this case is a sole proprietor.

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6 Replies

Prakash Gehani (Consultant & Teacher(Whatsapp 8718057907)) (1306 Points)
Replied 31 October 2019

Yes it can be written off

3 Like

sabyasachi mukherjee (26055 Points)
Replied 02 November 2019

@ Kamal
if he is solvent how can u write off the same against him..

1 Like

Kamal (Student) (65 Points)
Replied 02 November 2019

@ sabyaschi mukherjee, sir so what are the conditions to write off a debt

sabyasachi mukherjee (26055 Points)
Replied 03 November 2019

Do u hv a business?
Then the relevant sections can be more explicitly explained.

1 Like

Kamal (Student) (65 Points)
Replied 04 November 2019

Originally posted by : sabyasachi mukherjee
	Do u hv a business?Then the relevant sections can be more explicitly explained.

Yes Sir, Running a Partnership Firm have lent to a sole proprietor and the person has defaulted and is in a situation where he cannot pay this debt (but he is not insolvent), so what is the procedure in writing off this debt in my books

Rahul Patidar (student) (70 Points)
Replied 05 November 2019

There is no specific conditions for writing off debt. We can write of debt if amount is not recoverable. As per income tax, if amount is received from debtor after writing off the debt, the amount received will be treated income

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