Write-off of wrongly booked debt

Write-off of wrongly booked debt

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How can we remove this position from our accounts? The organisation we apparently owe the money, an agent of a Council, has no records of the sum or on what the money is owed for and know only about it from our frequent approaches to them to resolve the issue to which they has no answer for the past years nor now. However our auditors are not willing to let us write-off the sum without a confirmation from the creditor as per our books. So the situation is dragging on and on from one annual account to the next. Until 2 years ago we had a string of temping bookkeepers and finance officers, all messing up our accounts as the changed sometimes within weeks and continuation was also an issue in the leadership if the staff. We think this is the source of our problem. This has now changed after a 3 years change management process, accounts are kept properly and we want to get this remaining problem sorted. Any suggestions?

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By neileg
16th Jan 2012 17:00

Just write it off

The auditors can't stop you writing this off. If the amount is material, they can qualify your audit report, that's all. Is the sum so large that it will distort the true & fair view of your company's finances?

After 8 years it's probably statue barred anyway.

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By Euan MacLennan
17th Jan 2012 09:53

Are you a taxable entity?

Did you claim a deduction from profits when you processed the creditor 8 year ago?  If so, the write off will be taxable.

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By BigBadWolf
17th Jan 2012 17:32

Statute of limitations

Write it off - Statute of limitations - ask your auditors about that!

 

 

 

P.S. this sentence makes no sense at all - a little grammar and punctuation would go amiss

" The organisation we apparently owe the money, an agent of a Council, has no records of the sum or on what the money is owed for and know only about it from our frequent approaches to them to resolve the issue to which they has no answer for the past years nor now"

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