forgiveness of debt


M

Mike Cummins

I've googled this subject but didn't come up with a relevant hit. My
question is this: how do I book (for book purposes) forgiveness of debt on
the debtor's side. I know the tax treatment. Is it as simple as debiting
the liability and crediting an (other) income account in the general ledger?
Thanks,
mc
 
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J

John

I've googled this subject but didn't come up with a relevant hit. My
question is this: how do I book (for book purposes) forgiveness of debt on
the debtor's side. I know the tax treatment. Is it as simple as debiting
the liability and crediting an (other) income account in the general ledger?
Thanks,
mc
it's as simple as that
 
K

Ken Russell

Unless I misread your post, to forgive a debtor, you would CREDIT the
debtor's account and DEBIT an expense account.

--
Ken Russell

(e-mail address removed)
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