Legal Fee Invoice

UK Discussion in 'General Accountancy Discussion' started by davidlee, Feb 1, 2019.

  1. davidlee

    davidlee

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    Hi,

    I have a legal fee invoice, relating to the purchase of a company. The total invoice is £6,000 however we will be paying £2,500 and the ex owner will be paying the rest. How can I record this invoice please? Can I enter the total as only £2,500 with closing payment, or do I have to enter the total invoice amount?

    Thanks for your help!
     
    davidlee, Feb 1, 2019
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  2. davidlee

    bklynboy VIP Member

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    Who is being billed on this invoice and is legally responsible to pay? If the firm is required to pay and there is a separate agreement between your firm to get reimbursed by the ex owner record as a full payable by your firm and full expense. Then reduce the expense and set up a receivable from ex owner.
     
    bklynboy, Feb 1, 2019
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  3. davidlee

    davidlee

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    Thanks, the ex owner has been billed for this invoice, so he will be settling all of it and we have to pay him £2500.
     
    davidlee, Feb 2, 2019
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  4. davidlee

    Fidget VIP Member

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    In that case you shouldn't be recording the invoice. The ex-owner should invoice you for £2,500 and you should just accrue for it until they do. Keep a copy of the original invoice to back up where the charge originates.
     
    Fidget, Feb 3, 2019
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