Company loan to another company now bankrupt?

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Hiya

I'm just checking myself as I have a client who's company loaned 100k to another company, they were repaying it but at 62k owed bacl to my client they went bankrupt, whats the best way to account for it?

Thanks ever so much for your time and help

Clara

Replies (4)

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RLI
By lionofludesch
07th Sep 2019 17:12

Bad debt.

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By johngroganjga
07th Sep 2019 17:14

Insofar as it is unlikely to be recovered, as a bad debt. Why is that not obvious. Were you thinking it might be better shown as a recoverable debtor?

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Replying to johngroganjga:
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By clara-casa
07th Sep 2019 17:21

It was obvious but I was doubting myself and started thinking it was too straight forward and should be accounted for somewhere else. Thanks for clarifying and putting my mind at rest.

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Lisa Thomas
By Lisa Thomas - Insolvency Practitioner
09th Sep 2019 09:56

Can your client reclaim bad debt relief on any VAT element of the debt?

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