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K TOTAL RECEIVABLES FROM A CUSTOMER AND TOOK PROVISION FOR FULL AMOUNT -K
LATER CUSTOMER AGREED TO PAY IT BUT ONLYK AS FULL SETTLEMENT TO AVOID CASE (K DISCOUNT), AND WE AGREED . WHAT ARE THE JOURNALS ASPER IFRS?
1)- Following is going on the assumption that you have not written off your receivables and have just recorded contra receivale (Allowance for doubtful debt provision)
initial entry
Receivables 220K
Provision for doubtful receivables 220K
when the customer agreed to pay only 100k as final settlement then;
Allowance for doubtfule debts 120K
Receivables 120K
For the remaining amount of 100 K re instate following entry,
Account Receivables 100K
Provision for receivables 100K
when you received the amount
Bank Incoming 100K
Receivables 100K
Cash/Bank Incoming 100K
