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    cuinheaven's Avatar
    cuinheaven Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Apr 25, 2007, 05:13 AM
    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.
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

    Apr 25, 2007, 01:15 PM
    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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