Receivables

This topic has 2 replies, 2 voices, and was last updated 10 years ago by P2-D2.

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April 11, 2016 at 3:26 pm #309752
anu1234
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ISO-8859-1
April 11, 2016 at 3:27 pm #309753
anu1234
Member
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If a customer who owed me $825000 went into liquidation , and insolvency practitioner indicates that “every unsecured creditors will get approximately 12c in every $1” means what ? Will I show full 825000 in FS or should I find fair value , if so why ? How to find the FV ?
April 12, 2016 at 10:29 am #309848
P2-D2
Keymaster
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Hi,

It means that you will receive 12% of the $825,000. I’d therefore write off the remaining 88% through profit or loss.

Thanks
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