Lorraine Meeks
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Unclaimed Refund

Unclaimed Refund


We provide pre paid services and a customer left and was due a refund but did not ever confirm his bank details, we are now unable to contact him.  It is coming up to our year end and I wondered the correct accounting treatment for this.  Should it go into a holding account of some sort?



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27th Mar 2012 15:22

The ex client is a creditor

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By zebaa
27th Mar 2012 15:58

So the answers is yes as Bernard says. In six years if it is still unclaimed you will be relieved of this debt and can enter it as some type of 'other income'.  If you think it will never be collected and the amount is small you may want to make the 'other income' entry now with a supporting accounts note. Your call.

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27th Mar 2012 16:16

Out of interest, how much are we talking about about ££?


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27th Mar 2012 18:55


Hold the funds as a creditor, keep records of every attempt you make to contact the customer and return it and then, as suggested, book it as other income if you've failed to return it after six years.

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