banner_ad

Writing off creditors

1465 views 7 replies
User Avatar

Student
170 Points Posted on 13 January 2024
A firm has written off the creditors and added the same in capital of the firm saying that they have done settlement with creditors. Is it correct sir. Kindly guide.
Reply Share Follow
On 13 January 2024 at 21:54 Report
Replies (7)
User Avatar

GST Consultant
15986 Points Posted on 13 January 2024
No
It should be shown as income as creditors written back. Directly showing it in capital account is leading to evasion of tax.
55 Reply
On 13 January 2024 at 22:04
User Avatar

Student
170 Points Posted on 13 January 2024
Thank you sir. I request to further clarrify as why it is Income.
Reply
On 13 January 2024 at 22:10
User Avatar

"Do the Right Thing...!!!"
128147 Points Posted on 13 January 2024
Bcoz,
it's wrote as expenses in PYs ...
So, It's reversed as income...
463 Reply
On 13 January 2024 at 22:39
User Avatar

Profession Business
28207 Points Posted on 13 January 2024
Creditor aren't expense it's a liability.
creditor can be written off subject to some conditions.
44 Reply
On 13 January 2024 at 23:44
User Avatar

Finance
4566 Points Posted on 15 January 2024

Dr. Creditor

Cr. Gain from creditors written off

 

4 Reply
On 15 January 2024 at 06:41
User Avatar

Practising CA
8954 Points Posted on 15 January 2024
The original transaction was a revenue expenditure. So the reversal transaction will also be a revenue income.
30 Reply
On 15 January 2024 at 22:09
User Avatar

Profession Business
28207 Points Posted on 17 January 2024
Writing off creditors
is certainly an income . But it's a balance sheet item.
44 Reply
On 17 January 2024 at 16:43


CCI Pro
Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Threads

More recent discussions | Post

Related Threads
Loading

Latest Job Openings

View all
Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details