Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=19)
-   -   What is the journal entry to write off a liability? (https://www.askmehelpdesk.com/showthread.php?t=520158)

  • Oct 25, 2010, 11:58 AM
    joannes
    What is the journal entry to write off a liability?
    I have no history on the liability. It's been sitting on the balance sheet for 2 years now.
  • Oct 27, 2010, 03:50 AM
    hamzashakaa
    First you should order a statement of account from the supplier related to this payable and make sure that the supplier will not claim the amount of liability and that the liability should not be legally paid. Then you can close the payable amount to other revenues (Settlement of accounts payable).

    Dr. Accounts Payable
    Cr. Other Revenues

  • All times are GMT -7. The time now is 09:50 AM.