year end adjustments

You CR Receivables account and DR Irrecoverable debts expense account. I do suggest that you watch the free lecture on Irrecoverable and Doubtful Debts.

Even when, it is a liability to the company?

Sorry - I misunderstood your question! I assumed you were referring to a liability from another company to us (i.e. our receivable). If we have liabilities to other companies then we never write them off. We do not wait for them to be claimed! If we owe money then we should pay it - to do otherwise would be dishonest and unethical :-)

Oh, now i have understood, Thank you so much. i think they were trying to trick us.

You are welcome :-)

Hello guys, how are? hope you are ok. how do we treate costs inccured in disposing of a non current asset?

You would subtract them from the sale proceeds.

Thanks very much!!

You are welcome :-)