A dealer may write-off the whole or partial value of sales to a particular customer as bad debt. The amount of bad debts must be nullified and the purchase values needs to be transferred to expense account. The amount of tax included in such sale value can be claimed as a deduction by the dealer.
Go to Gateway of Tally > Accounting Vouchers > F7: Journal > Select VAT Adjustment Class from the Voucher Class List
Select Bad Debts Written Off in the Used for field.
Debit the Bad debts ledger grouped under Indirect Expenses from the List of Ledger Accounts.
Enter the value of bad debts in the Debit field.
Credit the Sundry Debtor ledger and select the appropriate bill details.
The credit amount is automatically entered.
Enter the details in the Narration field, if required.
Press Y or Enter to accept and save.
Note: The debit value entered for expense ledger in journal voucher by selecting Bad Debts Written Off in the Used for field is captured in Total Input Tax Claim column of box 15.
'Bad Debts Written Off' has been shared with
