Bed debtos Balance in books

This discussion explores how to handle long-standing debtor balances in accounting. The consensus leans towards transferring these amounts to the Profit & Loss account as bad debts. While generally accepted, it's advised to ensure the debt is genuinely irrecoverable and to document efforts made for recovery, especially for larger sums, to pre-empt potential queries from the IT department during assessments. If any amount is recovered later, it should be accounted for as income.