Hopefully one of you can help.
An insolvency claim is issued against a party for recovery of monies paid from a liquidated company. Given that the claim relates to more than 6 years ago, the party only has records for around 85% of the monies, the remaining 15% appear on the relevant bank statements of the party as going out (with the name of the company being paid that relates to the liquidated companies suppliers) however no invoice is present, and those companies do not retain records past the 6 year mark.
I understand what should have been in place, my question is, is the 15% completely ignored or is a pragmatic approach taken in consideration of the circumstances, I am not asking for judgment btw, just clarity on accounting principals on how it can be seen.
Thank you.
Replies (7)
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Very appropriate username for what appears to be a lack of accounting records to justify recovery of monies (activelyproactive might have avoided the problem). Any claim that has not been made within a 6 year period will fail under the statute of limitations.
Statue of limitations is 6 years. If a claim is brought after that you'll struggle to argue why a claim was not made sooner.
The question is are the bank entries clear evidence of missing invoices or not. I suspect you will have an uphill struggle on that.
Let me put that another way.
Why do you think they constitute evidence of the missing invoices?