Hi guys. Thanks for your assistance thus far. I’ve got a problem - i am unable to balance the number of inflows with outflows.
Put simply, there are amounts whose transactions are not forthcoming (am in a general partnership, 4 partners) yet they were received.
In your informed opinion, what’s the best way of going about such a situation? If more info is needed am happy to provide. Thanks in advance!
Probably more information is required, because are you talking about non balancing transaction or non balancing money. If the later then you need to do a write off. Say you invoiced a client, the client has proof of paying but the payment remains “outstanding” - then you need to write off the invoice to an expense account and that loss be shared by all partners.
Thanks for your response @Brucanna. Okay, perhaps this will clear things a little.
There’s money that was received over a long period (at least a year). However, this money is no longer in the account and it is difficult now to remember what it was entirely used for coz there are few receipts to totally dispense and allocate all of it.
As a result, i keep carrying forward amounts that are not actually there. Is this still a write-off? Am confused because the money was actually paid and it is only how it was used that’s ot adding up.
Yes, as the write off is an alternative to the actual expense, what ever that was.