payables long overdue

Discussion in 'General Accountancy Discussion' started by omoding, Aug 8, 2018.

  1. omoding

    omoding

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    hi all,
    i need your guidance on below;

    i have outstanding payables(suppliers) amounts in my books which are not paid out reason is these suppliers have closed out their business without me paying them now for 4years and they have not come to claim their money.

    my question is how do i treat this amounts-> do i adjust(write off) them as revenues in my p&L and is there aspecific accounting standard guiding us on this which am not aware?

    your guidance is much appreciated,

    regards,

    joseph.
     
    omoding, Aug 8, 2018
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  2. omoding

    kirby VIP Member

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    This case is usually covered by a state's "escheatment laws" in the US and you may have similar laws in your country. Under those laws you do not get to keep property that is not yours or, in your case, you must pay out to the State what you should have paid in the first place to the vendor. So the State steps in and says "give those bucks to me". So read your county's escheatment law and also get mgmt. OK to pay this to the government. Some low-life mgmts. like to keep the $. If so, protect yourself by having THEM approve keeping the $.
     
    kirby, Aug 9, 2018
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    ShanaW and omoding like this.
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  3. omoding

    omoding

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    HI KIRBY

    thank you for the advice, its quite unfortunate in my country there are no such laws.

    regards,

    joseph.
     
    omoding, Aug 9, 2018
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