Bad Debt Transfers

Azmi

Hi all,

I have a client who has debtors of around £15,000, Come September she is going ceasing to trade and is going into partnership with somebody else in the same line of business. Although measures will be taken to recover the debt my gut feeling and hers is that it will not be recovered in the near future.

My question is if we write these debtors off while she is a sole trader but she later collects them while in partnership, how would i account for it in the partnership accounts? Would it be better to not write them off when she ceases to trade as a sole trader and then transfer the debtors creating a provision in the accounts of the partnership and write off or match off when collected as appropriate in the partnership.

thanks