Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › factoring
- This topic has 4 replies, 2 voices, and was last updated 8 years ago by MikeLittle.
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- November 3, 2015 at 8:56 am #280193
a quick question:
i have a debt of 100 on my books as receivable.
i factor it and get 100 and the terms are such that its a loan.so i will setup the entry as follows:
Dr Debts Factored (or whatever its formally called) 100
Cr Liability 100
————————
and the balance in Receivables remains in the books as it is. .. correct?now, lets say i get 80 from the factor and its still a loan
Dr Debts Factored 80
Liability 80
————————
and the balance in Receivables remains in the books as it is. .. correct?thanks
November 3, 2015 at 9:59 am #280197please ignore .. the debit shd be cash!!…
November 3, 2015 at 1:43 pm #280272And the last 20 debit should be expenses
And you’re never in this world going to get $100 for factoring $100 of debt
And basically the entry is
Dr Cash 80
Dr Finance Costs 20
Cr Loan Account 100OK?
November 3, 2015 at 3:35 pm #280334thank u!
November 3, 2015 at 4:06 pm #280346You’re welcome
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