Explain about Write Off Entry?

I want to close One cash ledger. So I put write off entry passed. That cash ledger transfer to another one cash account Is this correct.

Write-off entry is passed when your customer does not pay you OR you have accounts payable balance which is too old. So, when you pass a write-off entry it reduces your accounts payable balance and books same amount as expense in your P&L - This may be done in the same financial year or it could be done of the previous year balance.

What do you mean by “close one cash ledger?” - could you be more specific with example please.


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In my books of accounts two cash ledgers are ther like 1. Cash account 2. Cash in hand - anas.
I want close that cash in hand - anas ledger to transfer to Cash account. is this correct?

Ok. You need to use ‘contra entry’ from Journal Entry document, This will transfer closing balance as of a particular day to the account which plan to use in future.

May be you could rename the ledger (duplicate) to reflect and not post any more entries their

yes correct before one month I use that cash in hand - anas ledger but going further i don’t want to use that ledger but in these ledger showing Rs.500 closing debit balance. I want to transfer that rs.500 to cash account.