How to write off accounts receivable

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If the debt of one or more counterparties has become hopeless, it must be written off the balance sheet. This situation occurs if the debtor has gone bankrupt, or if the organization has been liquidated, that is, there is no one left to demand the debt from, or the limitation period has expired.

Write-off of bad debts occurs as a result of inventory and execution of act No. INV-17, a sample for 2024 can be downloaded at the link .

After this, the debt is written off as expenses in the singapore telegram data accounting reports or covered by reserve funds, if they are provided. In this case, the debts do not simply disappear from the balance sheet accounts, but according to the rules, they must be transferred to off-balance sheet accounts and remain there for five years from the date of write-off. This is necessary so that the debt can be collected if the debtor suddenly has funds to pay.