Closing a business down

debbie2625

Hi

I want to close a business down.
Do the creditors and debtors have to be zero and if they are not can they be written off?
What do you do with the prepayments?
Is there anything else you have to do differently? Is is closing on the year end date

Thanks for your help

debbie2625

Thanks.
When you write off a creditor, what is the double entry?
If I do a credit note to bad debts, is the bad debts an expense and then it will increase my profit?

debbie2625

Nothing is happening to the business, there are no transactions no one is owed any money. I just have retainined earnings of £64, share capital of £100 and current earnings of -£300.