Trade debtor with credit balance

Trade debtor with credit balance

Didn't find your answer?

Hi All,

I have queries about the disclose of trade debtor with credit balance. The client has a list of trade detors, the total balance of trade debtors is in debit eg £12,000. if the balance of one of trade debtor (eg A)) is in creditor (-£2,000),

  1. Should i disclose the balance of A as trade creditor in notes to balance sheet ? or i need only to disclose the aggregate balance of trade debtors in the notes;
  2. If i should disclose the balance of A, please send me the link of requirement, eg FRSSE or FRS102 etc.

Thank you

Andi

 

Replies (7)

Please login or register to join the discussion.

avatar
By GW
29th Jul 2016 00:18

1. Disclose as a creditor, show debtors £14,000 creditor £2,000
2. Legislation:
see SI 2008/409 and SI 2008/410 in both cases Schedule 1 para 8
available on Legislation.gov.uk

Thanks (2)
Replying to GW:
avatar
By Andrew London
03rd Aug 2016 23:37

I agree your comments, but i can not find the answer from SI 2008/409 and SI 2008/410 in both cases Schedule 1 para 8, Could you please send me the copy of the part of legislation?

Thank you

Thanks (1)
Replying to Andrew London:
avatar
By GW
04th Aug 2016 09:26

8. Amounts in respect of items representing assets or income may not be set off against amounts in respect of items representing liabilities or expenditure (as the case may be), or vice versa.

Thanks (1)
RLI
By lionofludesch
29th Jul 2016 07:59

No netting off is the general rule.

Thanks (0)
Replying to lionofludesch:
avatar
By bernard michael
29th Jul 2016 10:10

What is the reason for the credit? Overpayment, payment in advance,missing sales invoice,error by either debtor or client, other cockup. The answer may have a bearing on where you show it

Thanks (3)
avatar
By Scriptic
29th Jul 2016 11:36

Bernard Michael has a point - Are you sure there is nothing about this balance that might require you to append a note to the accounts?

Thanks (0)
Replying to Scriptic:
By johngroganjga
29th Jul 2016 19:21

Bernard's point is that it might not be a creditor. e.g. if it pays an unrecorded sale it's income. But the solution to such anomalies is a correcting entry in the accounts to remove the anomaly, not a note in the accounts disclosing the anomaly.

Thanks (0)