I currently have a balance on a liability expense account which I need to reduce to zero as liability has been cancelled. Normally I would be deducting the loan in instalments BUT I have paid all instalments necessary and now the loan has been cancelled (NOT REQUIRED) so I have no more instalments to pay.
I'm thinking that I credit the 2-4147 expense account which shows the balance BUT what account do I debit?
CT56
Hi CT-56
Thanks for reaching out! When it comes to handling loan cancellation entries, you'll need to make a journal entry. While I can't give financial advice, there are plenty of experienced people in the forum who might be able to offer suggestions based on their experiences. It could also be helpful to speak with your accountant about this, as they can give you advice that's specifically tailored to your situation.
Feel free to get in touch if you have any other concerns or need further assistance.
Cheers,
Princess
I good now, thanks my accountant has helped with the query
