Written of creditors outstanding amounts

Dear All,

We have taken services/supplies from some of the vendors for the FY 2014-15 to 2016-17 and we have paid part payments to the vendors and theier is no payments to the some of vendors due to material rejction and servicies not completed.

 

Hence same amounts shuld be written off or still showing to our books of accounts?

If showing to our books of accounts how many years to be shown.

If written of the out standing amount which a/c debited

Replies (1)
the Management should make vendor wise analysis for the balances payable. for the balances if management is sure that the payments are not be made the same can be adjusted debiting payables and crediting other income. it is better to retain the balances of ageing Less than 1 year from the date of invoice, unless the management is of the opinion that the balances are no to be paid.

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