I have a client (Company A)that is owed £15k from another company (company b) Instead of payment the client has agreed to accept a "client" from company B to clear off the debt. So in effect Company B has paid their debt.
Should the fact they are giving them a client with a "goodwill" value of £15k mean that this go on the balance sheet as an intangible asset and therefore CR Debtors DR Goodwill? Or should the £15k debt simply be written off to Bad Debts as there is no guarantee the client they are getting will generate income?
If the client they are acquiring should appear on the balance sheet as an Intangible Asset is therr any requirement for Company A to actually pay £15k to Company B as this would be classed as a Capital Transfer?