Abhijit Mitra asked 1 month ago

In items to be excluded in DTL,  it is written part recoveries from the borrower in respect of debts considered bad and doubtful is to be excluded
But this is already advance and there is no question of inclusion in DTL
Please explain

1 Answers
RaviRavi Staff answered 1 month ago

when bank does part recoveries, there can be lack of clarity regarding its treatment whether it should be treated as principal or interest so bank may keep recovery in suspense or keep it unadjusted
Cash A/c Dr xxx
To Suspense A/c / Unadjusted Recovery A/c etc XXX
this credit balance should not be counted as DTL

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