exemption from creditor

[ama@accountant forums]

i have got an exemption from one of my creditor who supplied me with computers and softwares. How should i record this transaction?

 

[Shevkun]

You recognize it as Profit at P&L and the credit balance should be written-off from your Balance sheet
Dr Accounts Payables
Cr Other income

 

[Samir]

I usually reduce the amount that I expensed the computers.
dr ap
cr computer expense

This way I don't have any items that bring questions when I look at the pnl.