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Hello guys, how are you? i need your help, how do we write off a liability which is not likely to be claimed?
You CR Receivables account and DR Irrecoverable debts expense account.
I do suggest that you watch the free lecture on Irrecoverable and Doubtful Debts.
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.
Hello guys, how are? hope you are ok.
how do we treate costs inccured in disposing of a non current asset?
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