UK Dilapidations

[Jay2]

Hello all.
In past years we had to put aside money for dilapidations for when our lease would end
CR current liability (increasing balance sheet l
DR a code for costs (increasing our costs in the P&L )

on moving office we find we do not need to pay any liabilities , so will I just do a reverse entry
To reduce our costs
To reduce our balance sheet liabilities

thank you !

 

[Fidget]

If there's nothing to be paid out, probably best to clear out by reversing any increase that went through current year accounts (B/S & P&L) and reverse the rest that went through prior years using B/S provision not required, and retained earnings account - Dr provisions not required, cr retained earnings.