Write off a liabilty

Question

Good Morning

I was hoping someone would be able to help me. We have a Loan from a relative in our liabilities the relative has now passed away and the debt is no longer payable. What journal entries would I post to remove the debt? Would I record it as other income?

Thanks

Tracey_H · Answer

Hi @Maningham

Thanks for your post. As we're not accountants we're not permitted to provide advice on how to write off that liability. You will need to speak to your accountant with regards to this.

Please don't hesitate to post again if you need help in the future.

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