i want to write off one debtor amount from ledger,please tell what is accounting entry?
Personal Finance - 3 Answers
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Answer 1 :
Issue a credit memo and code it with a bad debt entry. Then apply the credit to the invoice. Not sure if this is what you are asking. Give more details, accounting software, version, etc...
Answer 2 :
If you use a manual system then the double entry would be to credit your debtors account and debit a bad debt account with the amount you want to write off. Remember to adjust for VAT if you are registered and to post the VAT amount onto your VAT account. If you use an accounts package then you should have a facility to write off a transaction.
Answer 3 :
Bad Debt Expense - Dr A/R-Allowance for Doubtfull Accounts - Cr
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