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Writing off a loan account

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Just trying to sort out some major errors for a client, and I'm not sure how to do the following.

15/16 accounts were restated in 16/17 accounts but a 15/16 loan was not fed through. In the 17/18 accounts I have an opening credit balance of 10k and a closing credit balance of £22k.  The loan was physically cleared in 2018 so that is the amount I need to write off.

 

 

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By Duggimon
08th Apr 2019 16:26

What else was wrong in the accounts where the balance wasn't brought through?

Start by finding the mistake and fixing that and the rest should fall into place.

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By legerman
11th Apr 2019 18:50

Duggimon wrote:

What else was wrong in the accounts where the balance wasn't brought through?

Start by finding the mistake and fixing that and the rest should fall into place.

There is a conversion journal dated 31st March 2016 which shows £2500 debit as the balance. Subsequent loan repayments have resulted in £22k credit.

In the same conversion journal there are accruals of £48k as well with nothing amended since, so I have very little confidence in it anyway.

The journal was done in February 18 and the 15/16 prior year restated on the 16/17 balance sheet as Co House.

I have the draft accounts for 16/17 but there isn't enough of a breakdown for me to marry it up and no adjustments have been made in the 16/17 xero so the figures dont match anyway.

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Caroline
By accountantccole
09th Apr 2019 11:41

If it was physically cleared, don't you have a payment to offset against it?

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By legerman
09th Apr 2019 12:31

accountantccole wrote:

If it was physically cleared, don't you have a payment to offset against it?

Yes I have the payments recorded but the previous bods haven't put the initial outstanding balance in Xero, so every payment has increased the credit balance. The loan is paid off and I have a credit balance of £22k.

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