Write offs


C

Colin Wynn

Can someone give me the basic rules of writing off bad debts please.

Many thanks,

Colin.
 
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D

David Floyd

Can someone give me the basic rules of writing off bad debts please.
Dr. Bad debts written off (P&L)
Cr. Customers Account (Sales Ledger Control)


:)

DF
 
D

Doug Ramage

David Floyd said:
Dr. Bad debts written off (P&L)
Cr. Customers Account (Sales Ledger Control)


:)

DF
For tax relief to apply, the bad debt(s) must be specific and not just a
general provision (e.g. 10% etc).

Also, there are special rules for claiming back VAT, if relevant.
 
C

Colin Wynn

Doug, do you know what those rules are?

If I've a sales invoice for £105 and the customer has paid £100 I want to
write off the remaining £5, which includes VAT, is there a time limit that
must apply before the debt can be written off?

Also what if the customer has paid nothing of the £105, do I credit back the
VAT to my sales account or write off £105 to my bad debt control account?

Colin.
 
P

Peter Saxton

Doug, do you know what those rules are?

If I've a sales invoice for £105 and the customer has paid £100 I want to
write off the remaining £5, which includes VAT, is there a time limit that
must apply before the debt can be written off?

Also what if the customer has paid nothing of the £105, do I credit back the
VAT to my sales account or write off £105 to my bad debt control account?

Colin.
Look at http://www.hmce.gov.uk/forms/notices/700-18.htm
 
C

Colin Wynn

Very good document, very in-depth, answers all my queries, many thanks again
Peter.

Colin.
 
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S

Slartibartfast

Ronald Raygun said:
Apropos of nothing, why is "debit" written "Dr." although there
is no "r" in "debit"? Something to do with Latin, perhaps?
In which case, presumably, the "r" in "Cr." doesn't derive from
the "r" in "credit" either, right?
Until someone comes up with something better, my suggestion is that they are
short for "Debtor" and "Creditor".
 

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