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-   -   Showing lawsuit on financials (https://www.askmehelpdesk.com/showthread.php?t=86081)

  • Apr 25, 2007, 05:13 AM
    cuinheaven
    Showing lawsuit on financials
    I am in a solid position to win a major lawsuit. I would like to show this deferred asset on the financial statements, however, I'm stumped as to where to put it on the debit side. The purpose is to strengthen the position of the company on the financial statement.
  • Apr 25, 2007, 01:15 PM
    CaptainForest
    Debit some sort of Receivable account. Perhaps Lawsuit Receivable

    If you were going to lose, you would:
    Dr. Loss
    Cr. AP

    So now that you will win you will:
    Dr. AR
    Cr. Gain

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