Write off accounts

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT member discussion
Was wondering if anyone could help me!

I have written off an account on SAGE Line 50 as the company went into liquidation! However, today I have received a cheque from the liquidators. Can someone please tell me what I do with this cheque and the postings I need to do!

Thanks

Ngocky

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Write off accounts

    First of all, what was the account you wrote off?

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Write off accounts

    Its a customer account

    Ngoc phan
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Write off accounts

    Hi,

    Sorry to but in! What I normally advise clients to do is to post it as a bank receipt to bad debts and calculate the VAT on the receipt (assuming your organisation is vat registered).

    Example:

    Go to bank, go to receipt.
    Code the receipt to bad debts (8100 I think).
    Put the total in the net column and click the "Calculate Net" button on the bottom left hand side of the screen.
    This will calculate the VAT for you.

    The credit will appear in bad debts as the debit would have appeared there in the first place

    Hope that helps.

    Regards
    Steve
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Write off accounts

    That is exactly the way I would treat it too.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Write off accounts

    TLG


    I think your avatar is fantastic! It is very appropriate for me this week! It's been one of those that warrants a huge amount of alcohol!

    Best regards
    Ste
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Write off accounts

    LOL - thank you! Having been training two new employees and had four auditors in for the last week and a half as well as one of our former audit company's people in to help me but asking loads of questions it fits me perfectly (how can anyone work with that many people asking questions all the same time :roll: ). Fortunately (or unfortunately) I finished work on 28th with nothing to go to yet so I'm beginning to unwind now.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Write off accounts

    Steve

    I thought you didn't need much of an excuse for copious amounts of alcohol!!!

    TLG, you definitely get the award for the best avatar I've ever seen, very appropriate too!

    Annette
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Write off accounts

    Annette,

    Oooh that was sharp!! :lol::lol:

    True though!!! :lol:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Write off accounts

    Thanks Steve for your help!!

    I really appreciate it!

    Ngocky
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Write off accounts

    Sorry in the delay for my reply... forgot I had posted in here. Seems you already have your answer..

    Dr: Bad Debts
    Dr: VAT (if applicable)
    Cr: Debtors

    Regards

    Dean

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