For some reason I'm having a total mental block on this...
A supplier has written off a debt built up by a sole-trader after the sole-trader became incorporated. They have continued to trade with each other. What would be ledger entries for that?
I feel you need to DR the supplier account to show that the money is no longer owing, but that makes it look like the business has paid it, which it hasn't.
Any clues greatly appreciated!
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