Hi all
Can't afford the accountant at the moment and would appreciate a little advice.
Invoiced a client in July 2008 for services rendered as follows:-
€2,625.00 service
€551.25 VAT
________
€3,176.25 total
After trying for months to get payment - the client's bank wrote to us in March 2009 and said that all the company's debts would have to be written down otherwise they were not going to re-finance the company and if that happened, we might not get paid at all.
The company directors requested that the debt be written down to €2000, which the bank paid direct to us on 30th March 2009.
My question is how do I account for the 'lost' income - €1,176?
Thanks.
Can't afford the accountant at the moment and would appreciate a little advice.
Invoiced a client in July 2008 for services rendered as follows:-
€2,625.00 service
€551.25 VAT
________
€3,176.25 total
After trying for months to get payment - the client's bank wrote to us in March 2009 and said that all the company's debts would have to be written down otherwise they were not going to re-finance the company and if that happened, we might not get paid at all.
The company directors requested that the debt be written down to €2000, which the bank paid direct to us on 30th March 2009.
My question is how do I account for the 'lost' income - €1,176?
Thanks.