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Irrecoverable debt

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Irrecoverable debt

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by AvatarJohn Moffat.
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  • February 27, 2025 at 2:47 am #715610
    AvatarM.Haris
    Participant
    • Topics: 31
    • Replies: 14
    • ☆

    if opneing and closing both is given of irrecoverable debt then only movement will be put in receivables account? How we will account when op balance of irrecoverable debt is more then closing and when closing is more then opening

    February 27, 2025 at 6:57 am #715613
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54845
    • ☆☆☆☆☆

    Any change in irrecoverable debts is irrelevant. Irrecoverable debts are removed from receivables in the year in which they are regarded as irrecoverable.

    If you are actually referring to changes in the allowance for receivables (due to doubtful debts) then any change is debited or credited to the irrevocable debts expense account.

    This is all explained in my free lectures on irrecoverable and doubtful debts.

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