Debtors Cash

Hello all, I am probably being very Naive.

I have receipts from Debtors that have paid once from pro-forma and again with VAT invoice.

Therefore I have receipts that are over a year old sitting on the balance sheet

I would like to write these amounts off to profit.

Any reason I cannot??

Comments
Steve Knowles's picture

Yes there is a problem

Steve Knowles | | Permalink

On the training courses I went on they said that to keep someone elses money is theft.

Overpayment

maxmillion | | Permalink

Seems odd that the debtors themselves did not identify the overpayments in their accounts. Perhaps they need a good bookkeeper!

But I believe it should be refunded as an overpayment. And think of the goodwill you may generate!

 And morally, it is the right thing to do.

theoreticaly

tom2another | | Permalink

There is no compulsion to repay the over payment. However as the debtor has 6 years in which to ask for their money back, then that's how long you should hold it in debtors before writing it off.

As a point of intrest, before 1/1/2002, these were considered as not taxable by the Revenue , but since then they do.

Ethics, Ethics, Ethics

markbeesley | | Permalink

 "Quis custodiet ipsos custodes"

Debtors

daveah | | Permalink

Are you currently showing them as negative amouints in the debtors ledger or do you have them shown in current liabilities as amounts overpaid & to be refunded?

If only the receipts and negative debtors are you are giving the compliance teams something else to get their teeth into be they VAT or CT.

Had a client in a similar position but had to persuade him that it simply wasn't his to keep. he reimbursed the customers who immediately put in a new order.

Honesty pays

 

Hopefully

geoffwolf | | Permalink

your VAT invoices indicate in bold lettering that the amount involved has already been received and even that the customer should ignore the previous pro-forma invoice

Invoicing

VUK | | Permalink

Invoices indicate that payment has been received, also statements are sent out monthly regardless of the customers balance.

Maybe these are accounting errrors, I will obviously look into them before ever writing anything off.

 

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The place to discuss accounting and tax issues specific to the construction industry, including CIS tax, VAT self billing and authenticated receipts.