Page 161 - F3 -FA Integrated Workbook STUDENT 2018-19

Receivables

2.2 Accounting for irrecoverable debts recovered

It is possible that debts previously written off may subsequently be paid by the
customer.

The entries made to write off the debt as an expense must be reversed before
recording the receipt of the payment from the customer.

Step

Step 1 Step 2
2

Reinstate the debt Allocate payment

Debit – Trade Debit – Bank
receivables’ ledger account
control account
Credit – Credit – Trade

Irrecoverable debts receivables’ ledger
control account
expense account

Illustrations and further practice

Now try TYU 2 from Chapter 11 of the Study Text.

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